KEY RATING DRIVERS
The expected rating of 'BBB+(EXP)' reflects that these are senior unsecured obligations of BInbursa that rank pari passu with other senior indebtedness, and therefore, this rating is aligned with the bank's long-term Issuer Default Rating (IDRs) of 'BBB+', which in turn are driven by the bank's Viability Rating (VR) of 'bbb+'.
Given their senior unsecured nature, these notes will typically be aligned with the bank's IDRs, and the rating of the notes will mirror any potential change on BInbursa's IDRs.
In turn, downside potential for these ratings would arise if the bank's capital adequacy metrics or internal capital generation deteriorate materially (i.e. Fitch core capital ratio below 15%), in the event of a reversal in the improving trends in funding and liquidity, and/or business and revenue diversification.
BInbursa has a strong capital position and an ample loan loss reserve cushion that provide a high capacity to absorb losses. It also has sound profitability, driven by stable margins, outstanding operating cost efficiency, and well-contained credit costs. Its funding and liquidity profile is adequate and improving, while risk concentrations continue declining gradually, although these remain relatively high.
Additional information is available on www.fitchratings.com
--'Global Financial Institutions Rating Criteria' (
Global Financial Institutions Rating Criteria
Source: Fitch Ratings
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