New York-based credit rating agency Fitch Ratings has affirmed the long-term foreign-currency and long-term local-currency ratings of publicly held Colombian bank Banco Agrario de Colombia S.A. at BBB with a stable outlook.
The big three rating agency also affirmed the Banagrario’s viability rating at bb.
In its analysis, Fitch highlighted its expectations that the bank will receive support from the government “should it be needed” even though it does not “explicitly guarantee Banagrario’s liabilities.” Nevertheless, the bank maintains a “key role” in helping to develop the national agricultural policy.
“In Fitch’s view, Banagrario’s business model is consistent with its key policy role to develop the government’s agricultural policy,” said Fitch in a statement.
“The bank maintains a clear focus and a strong franchise in the small- and medium-sized agricultural producer markets,” it continued. “However, its overall market share in the Colombian banking system is moderate at 4% of total loans and deposits at end June 2018.”
(Photo credit: Jared Wade)