Leading market position Sustained profitability levels Adequate management Flexible loan renegotiation Large portfolio of nonperforming assets (NPAs), in the form of restructured loans Nonconservative reserve coverage policy toward NPAs Small Salvadorian economy with low growth prospects The ratings on Banco Agrfcola S.A. are constrained by the bank's vulnerable asset quality due to its relatively flexible policy toward loan restructuring and a nonconservative reserve policy of NPAs, which is a weakness of the Salvadorian banking system as a whole. The ratings are also constrained by the relatively small size and limited diversification of El Salvador's economy, which also has low prospects for growth for the next two years. The ratings are supported by Banco Agricola's leading market position in El Salvador,
