Fitch: Largest Private Costa Rican Banks Prepared to Withstand Challenges
'Despite the prospects of a less dynamic economy, BAC, Scotiabank and Davivienda remain well positioned,' says Luis Guerrero, Associate Director, Latin American Financial Institutions.
Factors to watch include a sovereign downgrade, which would result in a downgrade of BAC's international ratings, and constrained growth and profitability due to FX and interest rate pressures. While Fitch believes FX will remain relatively stable, higher than expected currency devaluation could erode asset quality.
Fitch expects all three banks would receive support from their parents if internal capital generation is not enough to support credit growth. BAC outstands for its high internal capital generation but all three should remain above average.
The full report, 'Largest Costa Rican Private Banks Dashboard,' is available at www.fitchratings.com