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Fitch affirms Banco ProCredit ratings

Fitch Ratings on March 31 affirmed the AAA(slv) long- and F1+(slv) short-term national ratings of Banco ProCredit SA.

The outlook on the long-term rating is stable.

The ratings are based on the appropriate and sufficient support Banco ProCredit would receive from its ultimate shareholder, Germany-based ProCredit Holding AG & Co. KGaA. ProCredit operations in El Salvador show a high level of integration with its main shareholder, Fitch said.

The bank's capital levels were pressured during 2016, with its regulatory capital of 12.6% almost close to the regulatory limit of 12%. Fitch believes that a serious deterioration in the bank's loan portfolio and higher operating losses could cause it to require injections to stay within the required regulatory capital levels.

Meanwhile, profitability remains low and compares negatively both with peers and the financial system average. However, credit quality metrics suit the market segment the bank serves while asset quality has seen a marked improvement, Fitch said.