Fitch Ratings has affirmed
In addition, Fitch has withdrawn Bancaribe's ratings for commercial reasons.
Fitch has withdrawn Bancaribe's ratings for commercial reasons.
KEY RATING DRIVERS
IDRs and VR
Bancaribe's VR drives its IDRs. In turn, the operating environment highly influences the bank's VR. The analysis of asset quality and profitability ratios, company profile and risk management under hyperinflationary conditions is not meaningful at this time. Bancaribe's Long-Term IDR was affirmed at 'CC', as Fitch continues to believe the bank will meet its deposit obligations given the high level of liquidity in the domestic market even if the bank were to fail.
Historically, capitalization has been Bancaribe's weakest financial factor; however, since YE18, capital has benefited from unrealized gains on its
Support Rating
The banks' Support Rating (SR) of '5' and Support Rating Floor (SRF) of 'NF' reflect Fitch's expectation of no support. Support cannot be relied upon given
RATING SENSITIVITIES
Not applicable, as the ratings are being withdrawn.
ESG Considerations
Bancaribe has an ESG Relevance Score of '4' for Financial Transparency due to the distortion of financial indicators from hyperinflation and limited regulatory transparency, which has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. The bank's ESG Relevance Score for Governance Structure was changed to '4' from '3' to reflect the extent to which the regulatory framework negatively affects the operating environment and the financial performance of Bancaribe. This has a moderately negative impact on the rating in conjunction with other factors.
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
SUMMARY OF FINANCIAL ADJUSTMENTS
Regulatory risk-weighted assets were adjusted to reflect the risk from compulsory loans.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
RATING ACTIONS
ENTITY/DEBT RATING PRIOR
Banco del Caribe, C.A., Banco Universal LT IDR CC Affirmed CC
LT IDR WD Withdrawn CC
ST IDR C Affirmed C
ST IDR WD Withdrawn C
LC LT IDR CC Affirmed CC
LC LT IDR WD Withdrawn CC
LC ST IDR C Affirmed C
LC ST IDR WD Withdrawn C
Viability cc Affirmed cc
Viability WD Withdrawn cc
Support 5 Affirmed 5
Support WD Withdrawn 5
Support Floor NF Affirmed NF
Support Floor WD Withdrawn NF
VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
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