...Headwinds Ahead: Central American banking systems will face heightened risks in 2016. GDP growth is expected to decline across the region, and consequently, loan portfolio growth should decelerate. In Fitch's opinion, margins will remain under pressure with little chance to increase before the second half of 2016. Credit costs are likely to increase with the expected deterioration of asset quality in some markets. In some countries, dollarization remains a concern due to potential credit risks should local currencies devaluate more than anticipated. Rating Outlooks Stable: Despite a more challenging operating environment, ratings are expected to remain stable. In our view, banks are well prepared to weather higher risks without jeopardizing their creditworthiness. In addition, a sizable number of banks may receive timely support from their shareholders, if needed. Costa Rica Negative Sector Outlook: Costa Rican banks are the most exposed to challenging economic conditions. Fitch anticipates...
