S&P lifts Bancolombia view to positive

S&P said it revised the outlook on Bancolombia to positive from stable, reflecting its strengthening risk-adjusted capital ratio driven by its internal capital accumulation coupled with reduced risks in economies where the bank operates.

Although the bank's non-performing assets and credit losses increased in the past two years due to economic slowdown and some specific projects, such as Electricaribe and Ruta del Sol, S&P said it considers its asset quality metrics to be in line with the rest of the Colombian banking system.

The agency said it affirm the BB+/B issuer credit ratings on the bank and on its core subsidiaries, Bancolombia Panama and Banistmo SA.

S&P also said it affirmed the BB+ rating on Banistmo's $500 million senior unsecured notes due 2022.

The ratings incorporate the bank's leading market position in the Colombian banking system and sound operations in Central America that support its business stability, the agency said.

The ratings also consider that Bancolombia's large and stable deposit base continues to support its funding structure, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.