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Fitch affirms Asociacion Duarte's national ratings, revises outlook


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Fitch affirms Asociacion Duarte's national ratings, revises outlook

Fitch Ratings on Dec. 12 revised the outlook on Asociacion Duarte De Ahorros Y Prestamos' long-term national rating to negative from stable.

The rating agency also affirmed the Dominican Republic-based company's long- and short-term national ratings at BBB- (dom) and F3 (dom), respectively.

Fitch said that the change in the long-term outlook responds to operating losses incurred as a result of higher costs of credit.

It considered that "the slowdown in (loan) portfolio growth, the high cost of credit and the absorption of losses due to the maturity of the portfolio will reduce the flexibility to sustain levels of profitability consistent with the entity's risk profile in a near future."

The weakening of the capitalization indicators and the deterioration in delinquency indicators was also "priced in" the rating action. According to Fitch, the latter stood at 2.48% as of September against a financial system's average of 1.8%.