...Stable Outlook: The banking sectors in Central America and the Dominican Republic have stable outlooks despite the expected slowdown in credit growth in most of the countries. The operating environment faces moderate risk levels, but these could rise due to the tougher external economic environment. The Ratings Outlooks are mostly Stable, with few entities keeping their Positive Rating Outlooks. Changes in the ownership structure of some banks could trigger changes in the ratings of the acquired entities. Costa Rica, a More Moderate Outlook: Fitch revised the sector's outlook to stable from positive. The agency anticipates moderate loan portfolio growth in 2015. Profitability may weaken and remains susceptible to exchange rate fluctuations. While additional loan loss reserve requirements could impact earnings, it would help to improve reserve coverage. El Salvador, Still Sluggish: 2015 will be another year of slow growth. Although the entry of new players may increase loan supply, it will...
