Strong market position as the second largest bank in Guatemala in terms of assets; Average funding, mainly supported by its large, well-diversified deposit base and by long-term funding sources; and Improving asset quality and reserve coverage. Capitalization is moderate and vulnerable to devaluation of local currency; High concentration related to its commercial orientation and the small size of the Guatemalan economy; and Potential credit and market risks arising from high proportion of dollar-denominated loans. Our negative outlook on Banco G&T Continental S.A. mirrors that on the Republic of Guatemala. We could lower the ratings if we downgrade Guatemala or we could revise the outlook to stable following a similar outlook revision on the sovereign. The ratings on Banco G&TC continue
