Fitch Ratings Affirms BBVA Colombia’s Ratings at BBB+ with Stable Outlook

Fitch Ratings has affirmed BBVA Colombia S.A.’s long-term foreign currency issuer default ratings and long-term local currency issuer default ratings at BBB+ and its viability rating (VR) at bbb. The rating outlooks for the Colombian arm of the Spanish banking giant are stable.

In addition to these confirmations, the New York-based rating agency also affirmed both the long-term and short-term national scale ratings of BBVA Valores Colombia S.A. and BBVA Asset Management S.A. at AAA(col) and F1+(col).

“The affirmation … reflects Fitch’s unchanged view of potential support [from its parent], if it were needed,” said the big-three rating agency in a statement. “The consistency of BBVA Colombia’s overall profitability metrics through the cycle, underpinned by its retail banking focus, strong recurring and diversified revenues, and sound lending activities drove the affirmation of the bank’s VR.”

Fitch highlighted that BBVA sees its Colombian operations as a strategic subsidiary based upon its “profitability, growth potential, integration with its parent in terms of franchise, business model, and management.”

Other positives include BBVA Colombia’s high asset quality compared to other financial institutions in the region, its stable portfolio quality, and conservative risk appetite supported by a retail focus and sound risk management.

“The bank’s risk management structure is fully integrated with that of its parent, and it applies all of BBVA’s global risk management policies,” stated Fitch. “The risk appetite of the entity follows a global statement, core and specific risk metrics, and capital consumption.”

In full, Fitch Ratings has set the following ratings for BBVA Colombia and related companies:

BBVA COLOMBIA S.A.

• Long-Term Foreign and Local Currency IDRs at ‘BBB+’; stable outlook
• Short-Term Foreign and Local Currency IDR at ‘F2’
• Support Rating at ‘2’
• Viability Rating at ‘bbb’
• Subordinated debt at ‘BBB’
• National Long-Term Rating at ‘AAA(col)’; stable outlook
• National Short-Term Rating at ‘F1+(col)’
• National senior unsecured debt at ‘AAA(col)’
• National Long-Term subordinated debt at ‘AAA(col)’

BBVA VALORES COLOMBIA S.A.

• National Long-Term Rating at ‘AAA(col)’; stable outlook
• National Short-Term Rating at ‘F1+(col)’

BBVA ASSET MANAGEMENT S.A.

• National Long-Term Rating at ‘AAA(col)’; stable outlook
• National Short-Term Rating at ‘F1+(col)’

Photo credit: Jared Wade