...IDRs Reflect Standalone Profile: Banco de los Trabajadores' (Bantrab, or the bank) long- term issuer default rating (IDR) is driven by its intrinsic creditworthiness, as reflected in its viability rating (VR). The VR reflects Bantrab's moderate franchise, sound and recurring profitability driven by ample margins and good asset quality. The rating also reflects the bank's concentration in the public sector, rapid loan growth and modest capitalization. Pressured Capitalization: Capital represents the most significant constraint on Bantrab's future growth. Although the bank has sustained good profitability, internally generated capital has been offset by the more rapid growth of risk-weighted assets, a result of the strong loan growth. Preferred shares, which benefit the regulatory capital ratios, are excluded from the Fitch core capital (FCC) ratios. Fitch Ratings expects the FCC ratio to be sustained above 11% in the medium term. Low Income Diversification: Bantrab relies principally on...
