The ratings on Banco Agrfcola S.A. (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. Nevertheless, both Agrfcola and the Salvadorian banking system have experienced a general deterioration in asset quality in past years. Furthermore, the ratings on the bank are constrained by the relatively small size and limited diversification of El Salvador's economy. Agrfcola has a market share of about 33% in El Salvador. The bank has a history of leadership serving the retail market, and is particularly strong in attracting retail deposits, including savings and time deposits. Customer deposits are the bank's main funding source,
