NEW YORK--(BUSINESS WIRE)--Link to Fitch Ratings' Report: 2012 Outlook: Andean Banks
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=659971
Fitch Ratings' outlook for the banking sectors in Colombia, Ecuador and Peru in 2012 is stable, according to its just published report.
Fitch believes Andean banking systems are well positioned to face a deteriorating external environment and volatile international financial markets. These systems remain predominately deposit funded and have a limited reliance on international capital markets, trends that will continue in 2012. Low credit penetration, relatively sound asset quality and funding ratios, adequate capitalization, as well as supportive economic growth mitigate risks from moderate loan growth in all countries.
Sector outlooks in Peru and Colombia could improve with the banks' financial performance. As many banks in Ecuador and Venezuela are at the country ceiling, future sector outlook changes in these countries will depend on the evolution of sovereign creditworthiness.
Though not Fitch's base case scenario, severe asset quality deterioration, weak financial performance, a global credit crunch that disrupts funding or, additionally in the case of Venezuelan and Ecuadorian banks, further government intervention affecting the bank's liquidity or balance sheet, could lead to a negative change in outlook for each country's banking sector.
The full report, '2012 Outlook: Andean Banks' is available at 'www.fitchratings.com' or by clicking on the link above.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'EM Banking System Datawatch: Credit Slowdown Expected, But Most Growth-Markets Remain Sound' (Nov. 16, 2011);
--'Global Bank Rating Trends Q311' (Oct. 24, 2011);
--'Global Financial Institutions Rating Criteria' (Aug. 16, 2011).
Applicable Criteria and Related Research:
EM Banking System Datawatch
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=656618
Global Bank Rating Trends Q311
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=654209
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.