S&P: Atlantic Security Bank 'BB+/B' Ratings Affirmed; Outlook Remains Stable
The ratings on ASB continue to reflect our assessments of its business position as weak due to a still modest loan portfolio and narrow range of business lines, an adequate capital and earnings underpinned by a projected RAC ratio of 8% for the next 18-24 months, and an adequate risk position as a result of almost no NPAs and credit losses. The ratings also reflect our view of the bank's average funding and adequate liquidity. The bank's stand-alone credit profile (SACP) remains at 'bb-'.
The rating also incorporates our view of ASB's strategically important subsidiary status to Peru-based Credicorp Ltd. and Subsidiaries (Credicorp; not rated). We base this opinion on our view that ASB remains important to the group's long-term strategy and commitment to the bank, reflected in legal support and ASB's financial flexibility. Moreover, ASB continues to act as Banco de Credito del Peru's (BCP: BBB/Stable/A-2) private banking arm for its Central American operations and Peruvian clients, especially those that want to do business in this region. Credicorp also owns BCP. We believe it's unlikely that group will sell ASB in the near term.