S&P Global Ratings on Dec. 11 affirmed its BB- long- and B short-term global scale issuer credit ratings on Guatemala-based Banco Industrial SA.
The bank's stand-alone credit profile is "bb." The outlook remains stable.
The ratings continue to reflect the bank's solid market position, mainly in the corporate lending segment as the largest financial institution in the country. They also consider the bank's projected risk-adjusted capital ratio of 6% for the next two years, reflecting the bank's recent capital injection from its shareholders, its internal capital generation capacity and a reduced dividend payout ratio, the rating agency noted.
S&P also takes into account the bank's balance sheet position with above-average dollarization and stable funding base that relies on retail deposits. The bank's deposit-based funding also provides enough liquidity to face short-term obligations.
The growth in the bank's credit portfolio is being limited by weak economic growth due to recurrent political instability and weak government institutions, S&P said. The bank's asset quality metrics also slightly weakened, but S&P still believes the bank's current ratios remain manageable.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
