I found this info on AOL today, under the news on CIB, sounds good to me.
S&P Affirms 'pi' Ratings on Five Colombian Banks
NEW YORK, Feb. 13 /PRNewswire/ -- Standard & Poor's today has affirmed its public information ('pi') ratings on five Colombian banks as follows:
-- Banco Ganadero S.A., Banco de Bogota S.A., and Banco Industrial Colombiano S.A. at triple-'B' pi;
These ratings were initially assigned in December 1996, when Standard & Poor's initiated its coverage of public information ratings in emerging markets.
Public information ratings are an indication of an issuer's ability to service all its financial obligations denominated in local currency in a timely manner, on a global comparable basis. Public information ratings use Standard & Poor's internationally recognized symbology ranging from triple-'A'
through 'D', but include the suffix 'pi' following the rating, indicating that Standard & Poor's employed analytical procedures that parallel its traditional credit ratings, but differ in that they are based on public disclosure and
other sources of information of the public domain. Because they are based on public information, which is less comprehensive than the information used in
assigning traditional ratings, they are designed to be broader indicators of credit quality than traditional ratings.
Rapid consolidation and foreign participation will positively impact the Colombian financial system. Standard & Poor's believes that Colombia's financial system continues to be one of the strongest in Latin America, only second to Chile's. Sound credit practices, good regulation and supervision,
and continued liberalization are some of the financial system's strengths.
Yet banks are challenged to continue to expand under a more competitive environment, reduce operating inefficiencies, and strengthen asset quality performance.
-- Banco Industrial Colombiano's (BIC) triple-'B' pi rating is based on its good profitability, particularly high operating efficiencies when compared to other Colombian banks; its apparently conservative lending policies, which have resulted in fine reported asset quality indicators; and its good business position. BIC is currently undergoing a merger with Banco de Colombia, which will create the country's largest bank with over CoP $5 trillion in assets. Standard & Poor's recognizes that the merger could potentially bring important synergies to both banks, yet it is a complicated process due to both banks' large structures and business bases and their different organizational cultures. Amid the usual risks arising from any merger, Standard & Poor's believes a key element of success will be timing, so that BIC does not lose opportunities arising in the highly competitive Colombian market. One of management's challenges will be to successfully implement BIC's organizational culture and conservatism to Banco de Colombia's management and to maintain future financial results in line with those of BIC.
--CreditWire
SOURCE Standard & Poor's CreditWire
CO: Banco Ganadero S.A.; Banco Industrial Colombiano S.A.
IN: FIN
SU: RTG
02/13/98 15:09 EST prnewswire.com |
