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Fitch maintains Rating Watch Negative on Banco de Bogotá, Grupo Aval

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Fitch maintains Rating Watch Negative on Banco de Bogotá, Grupo Aval

Fitch Ratings on July 18 held Banco de Bogotá SA's viability rating and issuer defaultratings on Rating Watch Negative, citing the bank's weakened capital ratios.

The rating agency also maintained its Rating Watch Negative onGrupo Aval Acciones y Valores SAand Corporación Financiera ColombianaSA's issuer default ratings. Fitch had the companies' ratings on negativewatch in April.

Fitch attributed the action to a decline in Banco de Bogotá'scapital ratios, which it attributed partially to changes in accounting standardswith the introduction of IFRS, the depreciation of the local currency and goodwilldeductions from capital. According to the rating agency, the decelerationin the bank's balance sheet growth, sustained internal capital generation, and amoderate dividend payout policy along with the consolidation of Leasing Bogota Panamashould lead to a recovery of capitalization ratios.

Fitch affirmed Banco de Bogotá's long- and short-term foreignlocal currency issuer default rating at BBB+ and F2.

Grupo Aval's long- and short-term foreign local currency issuerdefault ratings were affirmed at BBB and F3, whereas Corporación Financiera Colombiana'slong- and short-term foreign local currency issuer default rating were affirmedat BBB+ and F2, while its national scale long- and short-term ratings were affirmedat AAA(col) and F1+(col) with a stable outlook on the national scale long-term rating.

Fitch also affirmed Bancode Occidente SA's long- and short-term foreign local currency issuerdefault ratings at BBB and F3. The lender's national scale long- and short-termratings were affirmed at AAA(col) and F1+(col), with stable outlook on the nationalscale long-term rating.

Additionally, CredomaticInternational Corp.'s long- and short-term foreign currency issuer defaultratings were affirmed at BBB and F2.