...IDRs Driven by VRs: The five banks included in the October 2015 peer analysis are the largest in Ecuador. The issuer default ratings (IDRs) of Banco Pichincha y Subsidiarias (Pichincha) and Banco de la Producci=n y Subsidiarias (Produbanco) are driven by their viability ratings (VRs), or stand-alone financial strengths. Banco Pacffico y Subsidiarias (Pacffico), Banco Guayaquil (Guayaquil) and Banco Bolivariano (Bolivariano) are not rated by Fitch Ratings, although they are included in this analysis because of their importance within the local financial system. Deteriorating Operating Environment: The Ecuadorian banking sector outlook for 2015 remains negative based on the banks' vulnerability to a deteriorating economic environment and the potential for adverse regulatory actions. Weakening U.S. dollar liquidity, consumer confidence and oil production pose challenges to a fast recovery. Regulatory Uncertainty: The Ecuadorian banking system is exposed to a higher degree of supervision, regulation...
