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Fitch affirms Banco de América Central, investment arm

FitchRatings on April 8 affirmed Bancode América Central SA, or BAC, and 's long- and short-term ratings at AAA(slv) and F1+(slv),respectively.

The outlookfor both companies is stable.

BAC'sratings are based on the support the bank would receive from its mainshareholder Banco de BogotáSA, if necessary. Fitch believes that financial support would beappropriate and sufficient, as the El Salvadoran unit contributes to Banco deBogotá's regional expansion and is a recurring source of revenue for the parent.

BAC ischaracterized by its good portfolio quality and historicallyhigher-than-average profitability, wide net interest margin and low costfunding. However, it experienced a 17% cut in operating profit due to areduction in operating efficiency and an increased provisional expense of nearly10%. However, BAC should continue to achieve profitability that is higher thanmarket averages in 2016, Fitch noted.  

Meanwhile,the national ratings of Inversiones Financieras Banco de América Centralreflect those of Banco de América Central.