Very strong capitalization Low credit loss experience Strong operating performance relative to mutual peers Small market position and susceptibility to ongoing competitive pressures Funding profile vulnerable to competitive funding pressure, particularly in a stressed operating environment The positive outlook on G&C Mutual Bank Ltd. (G&C) reflects our opinion that the bank's creditworthiness could strengthen in the next two years, due to the improving scale and diversity of its business franchise, supported by its strong operating performance relative to peers. G&C has developed and successfully implemented a well-defined business strategy, which has included diversifying into a small number of niche lending segments, through recently established partnerships. Further progression of this strategy could increase diversification of the bank's business base, supporting its
