Stable and diversified funding base, primarily consisting of customer deposits, while liquidity position is stronger than those of domestic peers; and A sound market share and diversified income sources that contribute to business stability and adequate results. Banking operations based in Bolivia, which limits the bank's credit profile and ratings; A competitive industry and margins are pressured as result of tight regulatory requirements and the pandemic-related lockdown; and Narrow capitalization levels according to our risk-adjusted capital framework. The negative outlook on Banco Union reflects that on Bolivia, which in turn indicates an at least one-in-three chance of a downgrade in the next 6-18 months if the sovereign's fiscal or external profile worsen beyond our base-case assumptions. We could also downgrade
