...Weaker Operating Environment: The operating environment has a strong influence on Banco de Desarrollo Rural's (Banrural) performance. Deterioration of the operating environment may result in pressures on the bank's financial profile. Guatemala's ratings and Stable Outlook were affirmed in June 2015. Public Sector Exposure: Banrural's IDRs are driven by its VR, which is in turn highly influenced by the sovereign rating, given Banrural's significant exposure to the public sector. Banrural maintains a moderate exposure to public sector deposits (24.5% of total deposits), and significant concentration in government bonds. The Guatemalan government also holds a 17.2% stake in Banrural. Good Capitalization: Capital levels remain above those of local peers and similarly rated international banks thanks to its solid capital generation capacity and moderate dividends payments. Fitch core capital to risk-weighted assets will remain sufficient to sustain growth, underpinned by strong capital generation...
