...Prudent Risk Appetite: Caja Rural de Navarra, Sociedad Cooperativa de Credito's (CRN) IDRs are driven by its standalone creditworthiness, as reflected in its Viability Rating (VR). The VR is driven by CRN's prudent stance towards risk and conservative underwriting standards, as reflected in markedly better than sector average asset-quality indicators, together with its robust capitalisation and stable funding structure. The VR also factors in CRN's regional franchise in Navarra and modest underlying profitability. Improving Asset Quality: CRN's asset quality metrics are among the best in Spain and improving in line with the sector. CRN's credit risk profile benefits from Navarra's better than national average performance during the recent Spanish economic crisis. This, together with its prudent risk appetite, has supported a resilient retail mortgage book (48% of end-1H15 loans). The non-performing loan (NPL) ratio was 4% at end-1H15 (5.3% including foreclosed assets). Real estate exposure...
