...Solid Capital Buffers: Caja Rural de Navarra, Sociedad Cooperativa de Credito's (CRN) ratings are driven by the bank's sound asset-quality metrics by Spanish standards and supported by its consistently low risk appetite, higher-than-domestic peers' loss-absorption buffers in capital and loan-loss reserves, and adequate funding and liquidity. They also factor in the bank's modest underlying profitability and regional franchise concentration. Better-Than-Peers' Asset Quality: Asset-quality indicators remain among the best in Spain, benefiting from CRN's prudent stance towards risk and conservative underwriting standards, which have been consistent throughout the economic cycle. The problem asset ratio, which includes non-performing loans (NPLs) and foreclosed assets, fell to 4% at end-June 2016 and remained significantly below its peer average. NPLs are fully covered by reserves, providing cushions against potential stresses. Capital Commensurate with Risk: CRN's capital position is supported...
