The ratings on Banco Agricola are based on its leading market position in El Salvador, particularly in attracting retail deposits, which contributes to strong liquidity. The bank also has a strong capital base and reasonable earnings. Both Agricola and the Salvadoran banking system, however, have experienced a general deterioration in asset quality. Furthermore, the bank's rating is constrained by the relatively small size and limited diversification of El Salvador (Republic of)'s economy. Agricola has a market share of about 33% in El Salvador, which was boosted by the acquisitions of Banco Desarrollo in 2000 and Banco Capital in 2001. The bank has a history of leadership serving the retail market, and is particularly strong in attracting retail deposits, including savings
