...IDRs Reflect Stand-Alone Profile: Banco de los Trabajadores' (Bantrab) 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. Moderate Capitalization: Bantrab's capital position has been stable over the past year following a five-year negative trend; although rapid asset growth has continued, capital- generation capability has strengthened significantly. Fitch's base scenario is that the bank will maintain an FCC above 13% over the medium term as credit growth moderates. In the agency's opinion, maintaining adequate loss-absorption cushions is necessary given high loan growth and concentration risks. Low Income Diversification: Net Interest Income (NII) continued to represent...
