Second-largest bank in Guatemala Stock ownership support Sound management team and adequate risk-management capabilities Low capitalization, existence of double-leverage, and limited profitability Structural asset concentrations Strong competition in Central America Low adjusted capitalization, debt at the holding company level, low profitability, structural asset concentrations, and the strong competitive environment in Central America limit the ratings on Banco G&T Continental S.A. Mitigating factors include the bank's strong and improving market position in Guatemala, stock-ownership support, and good, experienced management. Although capitalization remains a ratings weakness, Standard&Poor's Ratings Services expects noticeable improvement. As of September 2007, the bank's adjusted total equity (ATE)-to-assets ratio was 6.9%, which we consider low. This is an improvement, however, from the 5.2% prior to capital
