Standard&Poor's Ratings Services' ratings on Banco G&T Continental S.A. reflect the bank's high concentration in certain clients, its low coverage of NPAs, and its significant exposure to on-balance-sheet foreign currency risk. Deteriorating asset quality and persistent double leverage limit the bank's adjusted capitalization and profitability, and also constrain the ratings. However, G&T Continental's good market position and long track record in the Guatemalan banking industry, as well as its large and diversified deposit base and adequate access to long-term funding sources support its financial profile and ratings. The bank's commercial orientation makes diversification a challenge. At year-end 2009, corporate loans represented 82.5% of its total loans, and these were concentrated in a few clients. Stressful conditions in the
