Fitch lowers Bancolombia

Fitch Ratings said it downgraded the international ratings for Bancolombia SA and certain related foreign subsidiaries.

Bancolombia's viability rating and issuer default ratings also were downgraded to BBB after a review of the bank's financial profile, Fitch said.

The ratings downgraded include Bancolombia’s long-term foreign-currency issuer default rating to BBB from BBB+, short-term foreign-currency issuer default rating at F2, long-term local-currency issuer default rating to BBB from BBB+, senior unsecured debt rating to BBB from BBB+ and subordinated debt rating to BBB- from BBB, the agency said.

The bank’s short-term local-currency issuer default rating was affirmed at F2, national long-term rating at AAA(col), national short-term rating at F1+, senior unsecured debt national rating at AAA(col) and subordinated debt national rating at AA+(col).

The ratings also were removed from negative watch, where they were placed in April after the bank reported capital adequacy metrics that were weaker than expectations, Fitch explained.

The downgrades reflect deterioration in the bank’s capital metrics in recent quarters, the agency said.

Bancolombia's slower growth and sustained internal capital generation could aid in rebuilding its capital ratios over the next year, Fitch said.

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