Standard&Poor's Ratings Services' ratings on El Salvador-based Banco Agrícola S.A. are constrained by the bank's significant amount of restructured loans and foreclosures; the relatively small size, limited diversification, and low growth prospects of El Salvador's economy; and strong competition. The ratings are supported by Agrícola's leading market position in the country, adequate financial performance, and experienced management team. In our opinion, Agrícola's asset quality might come under pressure because it operates in a relatively small and undiversified economy and has not made provisions sufficient to fully cover loans that have proved problematic. At year-end 2008, Agrícola's total nonperforming assets (NPAs)--including nonperforming loans (NPLs), foreclosed assets, restructured assets, and Ficafé (a special government support program for El Salvador's coffee
