...Support-Driven IDRs: The issuer default ratings (IDRs) and support rating of Banco Davivienda Salvadoreno, S.A. (Davivienda Sal) reflect the likelihood of support from its main shareholder, Colombian Banco Davivienda, S.A. (Davivienda; bbb-). Along with Davivienda's other regional subsidiaries, Davivienda Sal is considered by Fitch Ratings to be strategically important to its parent. Challenging Operating Environment: Sector performance remains limited by the sluggish economy and heightened competition. In Fitch's opinion, the adverse operating environment poses a risk to Davivienda Sal's asset quality and medium-term growth prospects. Modest Profitability: Davivienda Sal's profitability remains modest and below international peers' average. The bank's operating ROAA increased slightly as a result of lower credit cost and enhanced efficiency, yet the bank's bottom line did not register improvements, as recoveries of previously written loans did not reach the results achieved in 2013. In...
