The rating agency believes that the lender's limited franchise is "offset by the competitive advantage of its business model, evident in the robustness and sustainability of its financial performance". Its solid capitalization, continuous high profitability and portfolio quality gives it an edge over its peers in the banking business.
The rating agency also highlighted the bank's experience and knowledge of the retail sector, which has allowed the bank to cater toward a more profitable market.
The outlook on the long-term rating is stable.
In Fitch's opinion, a deterioration of the company's financial performance could lead to downward actions on the rating whereas, upgrade action on the rating seem unlikely given the rather small franchise of the bank compared to other entities in the Panamanian banking system.
The rating agency also affirmed the short-term national ratings of the bank at F1+(pan).
