The ratings on Banco G&TC continue to reflect Standard&Poor's Ratings Services' view of its "strong" (as our criteria define it) business position in the low-penetrated Guatemalan banking system, our expectation of moderate risk-adjusted capital (RAC) ratios and earnings capacity, and a "moderate" risk position because of a dollarized balance sheet with satisfactory credit expansion and complexity compared with its peers. Even though the bank relies on a stable and growing customer deposit base, its funding sources are similar to the rest of the industry. According to our criteria, the ratings are limited by the ratings on the Republic of Guatemala, mainly because of the bank's high exposure to its sovereign and because we do not believe Banco G&TC
