Banco Industrial And Banco G&T Continental Outlook Revised To Positive From Stable On Same Action On Guatemala

On April 19, 2022, we revised the outlook on the Republic of Guatemala to positive from stable, following long-standing macroeconomic stability and fiscal prudence, which are helping to enhance GDP growth dynamics. However, we still see economic challenges on the horizon for banks operating in Guatemala, such as low-income economy, high poverty levels, and large informal sector that will continue to curtail banks' growth prospects and operating performance. In this sense, we're maintaining our Banking Industry Country Risk Assessment (BICRA) for Guatemala at group '7'. Our economic risk and industry risk assessments, and their respective stable trends, remain unchanged. The anchor for banks operating in Guatemala stands at 'bb'. The two rated banks in Guatemala-- Banco Industrial S.A. and Banco

...April 21, 2022 - On April 19, 2022, we revised the outlook on the Republic of Guatemala to positive from stable, following long-standing macroeconomic stability and fiscal prudence, which are helping to enhance GDP growth dynamics. - However, we still see economic challenges on the horizon for banks operating in Guatemala, such as low-income economy, high poverty levels, and large informal sector that will continue to curtail banks' growth prospects and operating performance. - In this sense, we're maintaining our Banking Industry Country Risk Assessment (BICRA) for Guatemala at group '7'. Our economic risk and industry risk assessments, and their respective stable trends, remain unchanged. The anchor for banks operating in Guatemala stands at '##'. - The two rated banks in Guatemala-- Banco Industrial S.A. and Banco G&T Continental S.A. (Banco G&TC)--operate with a stand-alone credit profiles (SACPs) of '##', one notch above the '##-' sovereign long-term foreign currency (FC) rating. In...

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