On Nov. 9, 2006, Standard & Poor's Ratings Services assigned its 'BB-/B' counterparty credit and CD ratings to Banco G&T Continental S.A. The outlook is stable. At the same time, Standard & Poor's assigned its 'BBB-' survivability assessment to G&T Continental. The counterparty credit rating assigned to G&T Continental is limited by its low adjusted capitalization, low profitability, structural asset concentrations, and the strong competitive environment in Guatemala. Balancing factors are the bank's strong market position in Guatemala, better-than-average asset quality, and good and experienced management. As of June 2006, the bank exhibited an adjusted common equity (ACE) of Guatemalan quetzal (GTQ) 817 million ($112 million) that results in an ACE-to-assets ratio of 5.5%, which we consider low. The difference
