Fitch Ratings on June 8 affirmed the national ratings of two Guatemala-based financial institutions.
Fitch maintained the long-term ratings of Financiera de Occidente SA, known as Fidosa, at BB+(gtm) and Banco Ficohsa (Guatemala) SA at BB-(gtm). Both of the entities' short-term ratings were kept at B(gtm). The outlook for the long-term ratings is stable.
Financiera de Occidente's ratings are based on its business profile which focuses on higher income niche markets and lower relative risk. They also reflect the company's good but concentrated credit quality, pressured capitalization, moderate profitability and adequate funding and liquidity.
Meanwhile, Ficohsa Guatemala's ratings reflect its intrinsic financial strength. They are also mainly influenced by the bank's business model which is focused on credit cards, its moderate franchise and low market share, but are limited by the high concentration of the financial system of Guatemala.
Fitch said operational support from the bank's majority shareholder, Grupo Financiero Ficohsa, strengthens the business model of the entity.