...Support: Given its profitability, growth potential, integration as a franchise of its parent, Banco Bilbao Vizcaya (BBVA, rated A¡/Stable by Fitch Ratings), business model and management, BBVA Colombia S.A. (the bank) is considered a strategic subsidiary of its parent in Latin America. Therefore, its IDRs reflect the support it would receive from its parent, if necessary. Good Portfolio Quality and Reserves: The stable economic backdrop and bolstered credit process have contributed to improve asset quality, which is now better than the industry average. This is complemented by sound loan loss reserve coverage (2.5 times [x] impaired loans and about 3.4% of total loans). Recent expansion trends may result in a slight deterioration of its asset quality ratios, but these should remain better than those of its local peer group. Ample Liquidity: A large cash and equivalents position, coupled with liquid and relatively safe investments, contribute to BBVA Colombia's sound liquidity ratios. Contingency...
