Banco Industrial S.A.'s (BI's) business stability is one of its major strengths as it is the largest bank in the country. Stable funding base, relying on customers deposits, which represent 70% of total funding base. Good asset quality and reserve coverage metrics, with the lowest non-performing loans ratio in the Guatemalan banking system. High level of dollarization on its loan portfolio compared to the Guatemalan banking system. Stalled credit growth due to political deadlock amid ongoing corruption scandals at top political levels. The negative outlook on BI reflects our view that if we downgrade the sovereign in the next 12 months, we could take the same action on the bank even if its SACP remains unchanged. Such a potential rating
