The ratings for Banco Agrfcola S.A. (Agricola) are based on its leading market position in El Salvador, particularly in attracting retail deposits, which contributes to strong liquidity. The bank also has a strong capital base and reasonable earnings. However, both Agrfcola and the Salvadoran banking system have experienced a general deterioration in asset quality in past years. Furthermore, the bank's ratings are constrained by the relatively small size and limited diversification of El Salvador's economy. Agrfcola has a market share of about 33% in El Salvador, which was boosted by the acquisitions of Banco Desarrollo in 2000 and Banco Capital in 2001. The bank has a history of leadership serving the retail market, and is particularly strong in attracting retail
