September 7, 2012 / 9:32 PM / 7 years ago

TEXT-S&P revises Banco G&T Continental outlook

(The following statement was released by the rating agency)

Overview
     -- On Sept. 6, 2012, we revised the outlook on the Republic of Guatemala 
to stable from negative.
     -- We are revising our outlook on Guatemala-based bank Banco G&T 
Continental to stable from negative.
     -- We expect the bank to keep its strong business position within the 
Guatemalan banking system.

Rating Action
On Sept. 7, 2012, Standard & Poor's revised its long-term rating outlook on 
Banco G & T Continental S.A. to stable from negative. At the same time, we 
affirmed our 'BB' long-term and 'B' short-term ratings on the bank.

Rationale
The rating action on Banco G&T Continental follows our outlook revision on 
Guatemala (please see "Republic Of Guatemala Outlook Revised To Stable From 
Negative On Stabilization Of Fiscal Prospects; Ratings Affirmed," published on 
Sept. 6, 2012 on RatingsDirect). Currently, the bank's stand-alone credit 
profile is 'bb+' and its issuer credit ratings are limited by the 
foreign-currency rating on Guatemala. In this sense, the ratings continue to 
move in tandem with those of the sovereign.

Our issuer credit ratings on Banco Industrial continue to reflect its "strong" 
business position, "moderate" capital and earnings, "moderate" risk position, 
"average" funding profile, "adequate" liquidity (as our criteria define these 
terms).

Outlook
The stable outlook mirrors that on the sovereign. We also expect Banco G&T 
Continental to keep its leading position in the Guatemalan banking system and 
that its capital and earnings will remain moderate within the next 12 to 18 
months, owing to our expected loan portfolio growth and internal capital 
generation.

Ratings Score Snapshot
Issuer Credit Rating               BB/Stable/B

SACP                               bb+
Anchor                             bb+
Business Position                  Strong (+1)
Capital and Earnings               Moderate (0)
Risk Position                      Moderate (-1)
Funding and Liquidity              Average and Adequate (0)

Support                            0
GRE Support                        0
Group Support                      0
Government Support                 0

Additional Factors                 -1

 (Caryn Trokie, New York Ratings Unit)
0 : 0
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