trending Market Intelligence /marketintelligence/en/news-insights/trending/gYJhYlz8R2UxUcxhd7zBrw2 content esgSubNav
In This List

Fitch affirms Costa Rica's Banco Popular y de Desarrollo Comunal

Blog

Banking Essentials Newsletter: July Edition - Part 2

Blog

Anticipate the Unknown Go Beyond Fundamentals to Uncover Early Signs of Private Company Credit Deterioration

Blog

Taking Loss Given Default Estimation to the Next Level: An Aspiration for All Creditors, Not Just Banks

Blog

Anticipate the Unknown A Fundamentals Approach to Detect Early Signs of Private Company Credit Deterioration


Fitch affirms Costa Rica's Banco Popular y de Desarrollo Comunal

Fitch Ratings on March 28 affirmed Costa Rica's Banco Popular y de Desarrollo Comunal SA's long-term foreign and local currency issuer default ratings at BB, with a stable outlook.

The Costa Rican bank's short-term foreign and local currency issuer default ratings were also affirmed at B, while its viability rating was affirmed at "bb."

Fitch said the issuer default and national ratings reflect the bank's intrinsic creditworthiness, while the issuer default and viability ratings reflect the high influence of the operating environment, public nature of the bank and benefits granted by the law.

They also incorporate the bank's ample loss-absorption capacity, good profitability, adequate asset stability, and stable deposit-based funding. The funding structure saw healthy growth in 2016, though Fitch noted it is less flexible than local peers, some of which have access to correspondent banks' funding and/or international debt issuances.

Fitch added the bank's delinquency ratio of loans 90 days past-due is 2.3%, which is gradually shrinking and is also higher than the Costa Rican financial system average.

Meanwhile, the bank has a support rating of 3 and support rating floor of BB-, which reflect a moderate probability of support from Costa Rica.