... Fitch Ratings' downgrade of BBVA Banco Continental, S.A.'s (BC) ratings reflects the view that, while it maintains a leading franchise and strong credit profile, structural constraints in the operating environment no longer warrant rating the bank one notch above the sovereign. These constraints include the banking system's reliance on the central bank as a provider of foreign currency hedging as well as local-currency liquidity, which Fitch views as a persistent feature of the financial system. Strong Financial Profile: BC's IDRs are based on the bank's stand-alone financial strength as reflected in its VR. The operating environment and the bank's robust franchise highly influence its VR. BC's VR also reflects its solid asset quality and ample reserves, robust and consistent financial performance, diversified funding and adequate capital. Moderate Risk Appetite: BC's moderate risk appetite, along with appropriate credit policies and risk...
