...Sound Loan Portfolio Quality: Banco G&T Continental, S.A.'s (G&TC) loan portfolio quality indicators are moderately better than most of its competitors, particularly given the bank's target customer segments. However, although the portfolio is well diversified by economic sector, it is characterized by relatively high debtor concentration and moderate exposure to dollar-denominated loans. Fitch believes that overall portfolio performance will remain stable for the foreseeable future. High Exposure to Sovereign Risk: Fitch views G&TC's credit risk as moderate due to its high exposure to the Guatemalan sovereign (`BB'/Stable'). As of December 2014, sovereign securities and central bank reserves accounted for 37.1% of G&TC's total assets or 4.7x of its Fitch core capital (FCC). Good Domestic Franchise: G&TC is systemically important as part of the second largest banking group in Guatemala. Its franchise is well known throughout the Central American region. G&TC's market share has remained...
