...Stand-Alone Profile: Banco de Desarrollo Rural, S.A.'s (Banrural) Issuer Default Ratings (IDRs) are driven by its intrinsic creditworthiness, which considers its strong local franchise and well established business model. Banrural's ratings are also influenced by sufficient profitability and capitalization levels to offset the negative trend in asset quality and challenging operating environment for the banking system. Systemically Important: Banrural is the second largest Guatemalan bank in terms of loans (18%), deposits (23%) and income. Fitch Ratings believes the bank is systemically important given its size, geographical coverage and client segments. Banrural focuses on lending to individuals and micro, small and medium-sized enterprises (SMEs) mainly located in in rural areas where the bank has low competition. NPL Ratio Deteriorated: As of December 2017, past due loans over 90 days (PDLs) increased to 3.6% with further deterioration during the first quarter of 2018 (above 4%). Fitch...
