Standard&Poor's Ratings Services' ratings on El Salvador-based Banco Agrícola S.A. are constrained by the country's relatively small size, limited diversification, low growth prospects, and strongly competitive banking system. The ratings are, however, supported by Agrícola's leading market position in the country, adequate financial performance, and experienced management team. In our opinion, Agrícola's asset quality could be pressured as a result of the more-challenging economic environment in El Salvador, within its relatively small and undiversified economy. Adequate risk management practices and a more-stringent reserve policy coming from Bancolombia have supported the bank's asset quality. As of December 2010, reserve coverage of nonperforming loans was 149% and the level of nonperforming assets (nonperforming loans, restructured loans, plus repossessed assets) was
