Fitch Ratings on Oct. 15 assigned long- and short-term national ratings of AA-(col) and F1+(col), respectively, to Colombia's Banco Mundo Mujer SA.
The ratings reflect the bank's microfinance-focused business model, high risk appetite, adequate capital levels, good asset quality and an improvement in its funding structure.
Although Banco Mundo Mujer is a leader in Colombia's microcredit market, it is a much smaller player in the broader banking system representing just 0.29% of the sector's total assets as of March, the rating agency said. Despite its high risk appetite, the company's delinquency ratio still compares favorably to the system.
"The bank's profitability is strong and resilient, supported by a high net interest margin that is in line with the risk level of its business model and low provision expenses," Fitch said.
The outlook on the bank's long-term rating is stable, and no rating changes are expected in the near term due partly to the lender's moderate franchise.