...Capital, Asset Quality: Caja Rural de Navarra, Sociedad Cooperativa de Credito's (CRN) ratings are driven by sustainably better asset quality than the domestic industry average, low risk appetite, stable profitability through the cycle and sound capitalisation. The ratings also reflect a sound regional franchise but low national market shares. Solid Capital Position: CRN's satisfactory capital buffers above regulatory requirements are supported by high earnings retention. At end-September 2021 the regulatory common equity Tier 1 (CET1) ratio was 18.1% (excluding quarterly results), which compares well internationally, and Fitch Ratings expects this to be maintained in the medium term. Limited capital vulnerability is reflected in very low capital encumbrance to unreserved problem assets. Better-than-Sector-Average Asset Quality: CRN's stable and stronger asset-quality indicators than peers' through the cycle are supported by its conservative underwriting standards and regional exposure...
