The ratings are based on Banco Agrfcola's leading market position in El Salvador, particularly in attracting retail deposits, contributing to strong liquidity. The bank also has a strong capital base and reasonable earnings. However, the Salvadoran banking system, along with Banco Agrfcola, has experienced a general deterioration in asset quality. Furthermore, the bank's rating is also constrained by the relatively small size and limited diversification of El Salvador's economy. Banco Agrfcola has a market share of about 33% in El Salvador, which was boosted by the acquisition of Banco Desarrollo in 2000 and Banco Capital in 2001. Aided by the bank's historic leadership in serving the retail market, it is particularly strong in attracting retail deposits, including savings and time
