...IDRs' Viability Ratings Driven: The issuer default ratings (IDRs) of Banco Popular Dominicano (BPD) and Banco Multiple BHD Leon S.A (BHDL) are driven by their viability ratings (VRs), or stand-alone intrinsic financial strengths. Banco de Reservas de la Republica Dominicana's and Banco de Servicios Multiples' (BANRESERVAS) IDRs factor in potential extraordinary government support. Operating Environment: The operating environment highly influences Dominican Banks included in this peer review. In all cases, IDRs are constrained by the sovereign; thus, there is no upside potential of the banks' international ratings in the near term. The Rating Outlook for the long-term IDRs is Stable, in line with the Dominican Republic's sovereign ratings. Improving Asset Quality: Asset quality at all the three banks covered in this review remains sound or has improved, supported not only by sustained growth and a benign economic environment but also significant loan restructurings. Asset quality at Dominican...
