...Intrinsic Strength: Banco Industrial's (BI) viability rating (VR) drives its issuer default rating (IDR). The operating environment has strong influence on BI's performance, as it may pressure the bank's financial profile. Its company profile, reflecting a strong franchise and stable business model, also strongly influences ratings. These factors, together with sound asset quality and good profitability, balance the bank's moderate capitalization and high loan concentrations. BI has dominant market position with strong pricing power in the corporate sector. Sound Asset Quality: BI maintains sound asset quality benefitted by its conservative approach allocating corporate loans and strong credit profile of the large borrowers, its policy of regular charge-offs and effective collection procedures. BI's NPLs (+ 90 days) remained below 0.8% since 2009 while reserves covered more than twice the NPLs (around 1.5 times the gross loans) in the same years. However, BI faces challenges managing its...
