S&P affirms Banco Fibra

Standard & Poor's said it affirmed its B+/B counterparty credit rating on Banco Fibra SA.

At the same time, the B+ rating on Banco Fibra's $50 million senior unsecured debt was affirmed.

The outlook on the counterparty credit rating is stable.

S&P added that the ratings on Banco Fibra incorporate the bank's low but improving profitability when compared with that of the industry, the challenge to build a diversified funding base given the natural concentration and wholesale nature of its deposits, its exposure to the fierce competition affecting most banks operating in the midsize companies segment and potential higher delinquency ratios in the future given expected increase in the consumer finance loans, with higher credit risk.

These risk factors are tempered by the bank's strong asset quality indicators, its good track record and expertise in the corporate and middle-market segments, adequate liquidity and provisioning metrics to face economic downturns and cover unexpected losses and the benefits in terms of ownership with the implicit support from the shareholder, the agency noted.

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