...Viability Ratings Drive IDRs: The Issuer Default Ratings (IDRs) of Bancolombia, Banco de Bogota, Davivienda and Banco de Occidente are based on their Viability Ratings (VRs) or stand-alone intrinsic financial strength. Banco BBVA Colombia's IDRs reflect institutional support from its parent. Following an update of Fitch Ratings' broad assessment of the banks' capital adequacy, we revised the Outlooks to Stable from Negative on those entities with Negative Outlooks. These ratings also consider the banks' resilient financial performance. Banks Resistant to Sluggish Economy: Resilient margins in the context of an uncertain operating environment, adequate cost controls and geographic diversification supported the financial performance of Colombia's larger banks. Weak growth, underpinned by a less dynamic economy, pressured Colombian banks' asset quality, although the metrics of the large banks remained well within the expected range for current ratings. Adequate Capitalization: Fitch views...
