...Viability Rating Drives IDR: Banco Davivienda's (Davivienda) Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) are driven by its Viability Rating (VR) of `bbb'. The bank's VR considers the operating environments in which its businesses are performed, its stable financial performance, adequate capital and sound asset quality. Davivienda's rating also reflects its conservative risk management and its clear long-term strategy. Resilient and Stable Financial Performance: Resilient margins in the context of an uncertain operating environment, adequate cost control and geographical diversification underpinned Davivienda's financial performance. However, an increase in delinquency levels accompanied by the need for additional loss loan provisions weighed on profitability. In Fitch Ratings' opinion, Davivienda's solid profitability reflects its well balanced mix between retail and corporate lending, strong earnings generation and consolidated franchise within Colombia. Adequate...
