...Stand-Alone Strength Drives Ratings: Banco de Desarrollo Rural's (Banrural) IDRs are driven by its VR, which is in turn highly influenced by the sovereign rating, given Banrural's moderate exposure to the public sector. Changes in Guatemala's operating environment have a strong influence on the Bank's financial profile. Guatemala's Ratings and Stable Outlook were affirmed in April 2016. Public Sector Exposure: Banrural maintains moderate exposure to public sector deposits (25% of total deposits), and significant concentration in government bonds (54% of total investments). The Guatemalan government also holds a 17.2% stake in Banrural. Good Capitalization: Banrural maintains good capital levels thanks to its solid capital generation capacity and moderate dividends payments. Its Fitch core capital to risk-weighted assets stood at 15.3%, comparing positively with peers. Banrural's growth is dynamic and often exceeds market growth; however, it is in line with the bank's internal capital generation....
