Banco Industrial, Banco G&TC Outlooks Revised To Positive On Improving Economic Risk Trend In Guatemala's Banking Sector

Guatemala (BB/Positive/B) has manageable fiscal deficits, very low net debt, a strong external profile, stable unemployment rate, and a history of sound monetary policy. The positive outlook on the sovereign rating reflects all these factors. Banks are benefiting through sustained lending expansion, the diversifying loan book, higher net interest margins, which have resulted in stable profitability metrics while keeping manageable asset quality indicators. We revised the economic risk trend in our Banking Industry Country Risk Assessment (BICRA) of Guatemala to positive from stable. Consequently, we revised the outlook on two Guatemala-based banks--Banco Industrial S.A. (BI) and Banco G&T Continental S.A. (Banco G&TC)--to positive from stable. We could upgrade both banks if the positive trend in the economic risk materializes and

...- Guatemala (##/Positive/B) has manageable fiscal deficits, very low net debt, a strong external profile, stable unemployment rate, and a history of sound monetary policy. The positive outlook on the sovereign rating reflects all these factors. - Banks are benefiting through sustained lending expansion, the diversifying loan book, higher net interest margins, which have resulted in stable profitability metrics while keeping manageable asset quality indicators. - We revised the economic risk trend in our Banking Industry Country Risk Assessment (BICRA) of Guatemala to positive from stable. - Consequently, we revised the outlook on two Guatemala-based banks--Banco Industrial S.A. (BI) and Banco G&T Continental S.A. (Banco G&TC)--to positive from stable. We could upgrade both banks if the positive trend in the economic risk materializes and we upgrade the sovereign to '##+' from '##'. MEXICO CITY (S&P Global Ratings) Jan. 23, 2025--S&P Global Ratings revised its outlook on BI and Banco G&TC...

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