...Strong, Competitive Position: Grupo Aval Acciones y Valores S.A.'s (Grupo Aval) ratings are driven by the business and financial profile of its main operating subsidiary, Banco de Bogota (Bogota). Moderate double leverage, good cash flow metrics and a sound competitive position in multiple markets also support Grupo Aval's ratings. The holding strategy and operations remain under Fitch Ratings' expectations after the BAC Holding International Corp. (BAC) spinoff in March 2022. Evolving Consolidated Performance: On a consolidated basis, Grupo Aval's financial profile has remained relatively stable amid a more challenging operating environment (OE). Asset quality slightly deteriorated, with a consolidated 90-days nonperforming loan (NPL) of 3.6% at June 2023. On the other hand, the holding company's operating profit to estimated risk- weighted assets (RWA) ratio deteriorated to 2.65% at June 2023 due to increasing loan impairment charges, which affected Aval's subsidiaries. Evolving Double...
