On Aug. 18, 2005, Standard & Poor's Rating Services affirmed its 'BB/B' counterparty credit and CD ratings on Banco Agricola S.A. The outlook is stable. The ratings are constrained by an important amount of restructured loans and foreclosures, residual problems in the coffee sector, and the relatively small size and limited diversification of El Salvador¦s economy. The ratings are supported by Banco Agricola's leading market position in El Salvador, its diversified loan portfolio, its good profitability, and its broad base of retail deposits. The bank is differentiated from its peers by better efficiency ratios, lower funding costs, and lower concentrations in its client base. Credit policies are considered to be adequate, and in the last year Agricola introduced important changes
