trending Market Intelligence /marketintelligence/en/news-insights/trending/uBm4yHD1GkNDEpVOSo7xIw2 content esgSubNav
In This List

Fitch affirms Banco Davivienda's, Grupo Bolivar's ratings with stable outlook

Blog

Banking Essentials Newsletter: January 11th Edition

Blog

Banking Essentials Newsletter December 21st Edition

Blog

The Road to Basel IV: Navigating the challenge facing European banks

Blog

Basel Framework- Utilizing data to analyze the capital position of European banks.


Fitch affirms Banco Davivienda's, Grupo Bolivar's ratings with stable outlook

Fitch Ratings on July 18 affirmed Banco Davivienda SA's long- and short-term foreign and localissuer default rating at BBB and F3, respectively. It also affirmed 's long- and short-termnational ratings at AAA(col) and F1+(col), respectively.

The outlook on the long-term ratings is stable.

According to Fitch, the ratings actions on Davivienda reflectits resilient and stable financial performance, in addition to its strong assetquality and risk management. The rating agency also highlighted its clear long-termstrategy and adequate execution of that strategy and its conservative dividend payoutpolicy that bolstered its capital position as well.

"Less dynamic economic growth and potential margin pressuresmay detract from profitability, although Fitch expects the bank's efficiency andcontrolled credit costs to continue to underpin internal capital generation,"Fitch said.

Meanwhile, Grupo Bolivar's rating affirmation was based on Davivienda'screditworthiness, as it owns 55.9% of the bank, which is its main subsidiary. "GBratings are aligned with Davivienda's because of low double leverage supported bya high level of earnings retention and strong cash flow metrics that sufficientlymeet its debt service requirements," Fitch noted.