Moody's may cut Bancolombia

Moody's Investors Service said it published the rating results for banks in Colombia as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies.

Moody's rates two banks in Colombia. The updated bank financial strength rating methodology has benefited the ratings of Banco de Bogota. Relatively strong financial fundamentals combined with an established franchise have been the main drivers of the upgrade to C- from D+.

The bank financial strength rating for Bancolombia remains on review for possible downgrade, as does the local-currency deposit rating. That review is focused on the potential impact of Bancolombia's proposed acquisition of Banco Agricola, SA of El Salvador, Moody's said it said.

Bancolombia's bank financial strength rating is unchanged at D+, on review for possible downgrade. The local-currency deposit rating is Baa1/ prime-2, also on downgrade review. The foreign-currency deposit rating is unchanged at Ba3/not-prime.

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