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Fitch affirms national ratings of Nicaragua-based Banco ProCredit

Fitch Ratingson July 21 affirmed the long- and short-term national ratings of at AA+(nic) and F1+(nic),respectively.

The outlookis stable.

The ratingsare based on the support the bank will receive from its main shareholder, ProCreditHolding AG & Co. KGaA, if required. Fitch sees high reputational risk for theparent company given a breach in the Nicaraguan unit as well as high integrationof operations, practices and commercial orientation between the two.

Fitch notedthat Banco ProCredit shifted focus to the small and medium enterprises segment giventhe potential growth in the area and to improve operational efficiency. The currentmarket orientation allowed an improvement in the bank's financial performance andprofitability, Fitch said.

The bank ischaracterized by moderate capital levels, lower-than-average profitability, anda good and diversified loan portfolio, as well as stable operations.