Standard&Poor's Ratings Services' rating on Banco G&T Continental S.A. (G&T Continental) is limited by its relatively low adjusted capitalization, debt at the holding company level, low profitability, structural asset concentrations, and the strong competitive environment in Guatemala. Mitigating factors include the bank's strong and improving market position in Guatemala, stock-ownership support, and good, experienced management. As of September 2007, the bank exhibited an adjusted total equity (ATE) of Guatemalan quetzal (GTQ) 1,550 million ($200 million) that resulted in an ATE-to-assets ratio of 6.9%, which we consider low. It's an improvement from the 5.2% and is the result of capital injections and the merger with Banco de Exportación S.A. (BANEX; not rated). The difference between adjusted capital and statutory
