On Oct. 25, 2007, Standard&Poor's Ratings Services affirmed its 'BB/B' counterparty credit rating on Banco Agricola S.A. (Agricola). The outlook is positive. The ratings on Banco Agricola S.A. (Agricola) are constrained by an important amount of restructured loans, significant competition, and the relatively small size and limited diversification of El Salvador's economy. The ratings are supported by Agricola's leading market position in El Salvador, its diversified loan portfolio, improving profitability, and broad base of retail deposits. The bank has better efficiency ratios, lower funding costs, and lower concentrations in its client base than those of its peers. Credit policies are adequate, and in the past two years, Agricola introduced important changes to underwriting processes to improve asset quality.
