Standard&Poor's Ratings Services' ratings on Guatemala-based Banco G&T Continental S.A. reflect the bank's high concentration in certain clients, its low coverage of nonperforming assets (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 constrain the ratings. However, G&T Continental's good market position and long track record in the Guatemalan banking industry, 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 Guatemalan economy--lower household
