Promerica Financial Corporation's (PFC's) funding structure leans on a stable and highly diversify deposit base with convenient short-term financial obligations. Wide diversification by geography, economic sector, and client allows us to rate the bank above the sovereign rating on Ecuador (B-/Stable/B), given that loans to domestic entities account for 32% of total loans. Recent economic struggles related to the COVID-19 pandemic, coupled with the historically political vulnerability in the region, could dent the bank's profitability and asset quality metrics. Large exposure to the consumer lending segment could further pressure asset quality metrics during the pandemic. Our current capital and earnings assessment on the bank incorporates the region's high economic risks. The stable outlook on PFC for the next 12 months
