The counterparty credit rating assigned to Banco G&T Continental S.A. is limited by its low adjusted capitalization, low profitability, structural asset concentrations, and the strong competitive environment in Guatemala. Balancing factors are the bank's strong market position in Guatemala, better-than-average asset quality, and good and experienced management. As of September 2006, the bank exhibited an adjusted common equity (ACE) of Guatemalan quetzal (GTQ) 944 million ($124 million) that results in an ACE-to-assets ratio of 6.0%, which Standard & Poor's Ratings Services considers low. The difference with the current statutory capitalization ratio of 15% is because we do not consider hybrid capital as part of ACE. The adjusted total equity-to-assets ratio of 6.7% is also low. The bank's stockholders have been
