...VR Drives IDRs: Banco de Occidente S.A.'s (Occidente) Issuer Default Ratings (IDRs) and national ratings are driven by its Viability Rating (VR) of `bbb'. The bank's ratings consider its solid capital ratios, healthy profitability, asset quality metrics, moderately concentrated funding, and low-risk, diversified business model. Solid Capital Ratios: Consistent capital generation and moderate dividend policies underpin Occidente's solid capital metrics. The declining trend in the bank's Fitch Core Capital (FCC) ratio reverted in 2016, reaching 14.32% by year-end as internal capital generation materially exceeded asset growth. In Fitch Ratings' view, Occidente's capital ratios are adequate given the bank's strong loan loss reserves and loan quality as well as its stable earnings generation. This level continues to exceed that of its domestic peers and is in line with international peers. Stable, Moderately Concentrated Funding: As a medium-sized bank with ample presence throughout the country,...
