...Strong Capital: Banco de Occidente S.A.'s (Occidente) ratings are explained by its viability rating (VR) of bbb. Its capital metrics have improved since 2010 based on consistent capital generation and moderate dividend policies. Occidente's Fitch core capital (FCC) ratio hovered steadily around the 16%17% range during 20102013. At December 2014, its FCC ratio declined to 14.49% after a more than proportional increase of risk weighted assets, compared with the increase in FCC. This level is considered sufficient by Fitch and is above the capital levels of peers. Good Asset Quality: Occidente's conservative credit and risk management policies and stable economic environment in Colombia resulted in good asset quality (90-day PDLs of 1.8% at December 2014), which has remained fairly stable for the past few years and is complemented by sufficient loan loss reserves (2.4x its 90-day PDL portfolio). Stable, Moderately Concentrated Funding: As a medium-sized bank with an ample presence across the...
