...Bancolombia's Support Drives IDR: The issuer default rating (IDR) of Banco Agromercantil de Guatemala, S.A. (BAM) now reflects the high probability of support from its main shareholder, Bancolombia, S.A. (Bancolombia; long-term IDR: `BBB+'/Negative Rating Watch), if required. Fitch Ratings views BAM as an important subsidiary to its parent given its role in Bancolombia's regional expansion and the potential reputation risk it represents. High Sovereign Exposure: Like all major local banks, BAM is significantly exposed to the Guatemalan sovereign (local currency and foreign currency IDRs of BB) through the holding of large debt securities portfolio (76.3% of equity) and the concentration of its business volume in the country. Fitch does not expect this to change due to limited investment options in the country. Guatemala's country ceiling limits BAM's IDR at `BB+'. Moderate Capitalization: Capital levels are pressured by high growth rates, above its internal capital generation in the last...
