...Resilient and Stable Performance: Banco Davivienda S.A.'s (Davivienda) long-term local and foreign currency IDRs are driven by its VR of `bbb'. The bank's VR is highly influenced by its capitalization metrics and operating environment. Davivienda's ratings also consider its consistent performance, solid asset quality and risk management and its clear long-term strategy and adequate execution of that strategy. Resistant Capital Metrics: Significant currency depreciation in 2015 increased the proportion of USD-denominated assets, although capital remained mainly denominated in local currency. The impact was limited for Davivienda compared to other large Colombian banks, as the bank's goodwill was in Colombian pesos (COP1.6 trillion), which reduced this deduction from capital. However, Fitch notes Davivienda's FCC ratio is weak compared with international peers (universal commercial banks in the `bbb' rating category operating environments). Improved Efficiency Explains Profitability: Despite...
