...Bancolombia's Support Drives IDR: The issuer default rating (IDR) of Banco Agricola, S.A. (Agricola) reflects the high probability of support from its shareholder, Bancolombia, S.A. (Bancolombia; long-term IDR: `BBB+'/Stable), if required. Fitch Ratings views Agricola as a core subsidiary due to the meaningful and recurring share of revenues to its parent and key role in Bancolombia's regional expansion. El Salvador's country ceiling limits Agricola's IDR at `BB', two notches above the local currency long-term IDR of the sovereign. Operating Environment Constrains VR: The challenging domestic operating environment constrains Agricola's viability rating (VR) and affects Fitch's assessment of the bank's intrinsic financial strengths. Weak economic conditions constrain credit growth, while heightened competition for deposits pressures margins. Fitch also expects further credit quality challenges with rising household leverage. Stable, Low-Cost Funding: Deposits consistently provide more than...
