Leading market position Improving profitability levels Adequate management Large portfolio of nonperforming assets (NPAs) in the form of restructured loans Flexible loan renegotiation and nonconservative reserve coverage policy toward NPAs Small Salvadorian economy with low growth prospects The ratings on Banco Agrfcola S.A. (Banco Agricola) are constrained by the bank's vulnerable asset quality due to its relatively flexible policy toward loan restructuring and a nonconservative reserve policy on nonperforming assets (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. The ratings are supported by Banco Agricola's leading market position in El Salvador, particularly in attracting retail deposits, which contributes
