Fitch Ratings last week upgraded Banco Davivienda S.A.’s viability rating (VR) to “BBB” from “BBB-” and Issuer Default Ratings (IDRs) to “BBB” from “BBB-.”
The ratings have been upgraded because the bank restored its capital to levels in line with its peers and reformed performance to gain more profit from its subsidiaries. The outlook has been revised to “Stable” because in Fitch’s opinion, the bank’s balance sheet, performance and key credit metrics should remain roughly the same over the rating horizon.
The bank’s VR, IDRs and senior debt ratings reflect Davivienda’s improved capitalization and profitability, and are considered key for Fitch to keep enhancing the bank’s financial profile. Fitch’s also considers its consistent performance, strong asset quality and risk management and its clear long-term strategy and adequate execution.
Davivienda’s new subsidiaries are showing improvement in their performances as well, and have continued asset growth and better funding balances, which are on par with Davivienda Colombia. Part of the decision to upgrade the bank was Davivienda’s ability to devise and execute clear, long-term strategy goals.
