...Challenging Capitalization: Banco de Bogota S.A.'s (Bogota) capitalization was particularly affected by a change in accounting standards to IFRS from Colombian GAAP (Colgaap) in December 2014 as well as by the significant depreciation of the local currency, which boosted Bogota's USD-denominated risk-weighted assets and goodwill deductions from capital. Under IFRS, Bogota's Fitch Core Capital (FCC) ratio declined to 9.89% from 11.24% under Colgaap at YE14, since the change in accounting standards affected mainly goodwill and revaluations of fixed assets treatment. In 2015, the bank's FCC ratio declined further to 8.84%, more than Fitch anticipated, as the Colombian peso depreciated by 32%. Robust Asset Quality: Bogota's conservative credit and strong risk management policies have resulted in very good asset quality despite a challenging economic environment in Colombia (as well as relative stability in Central America). Loans 90 days past-due remained stable at 1.47% at March 2016, having...
