Fitch has also affirmed CIC's Support Rating at '2'. The Rating Outlook is Stable. A full list of CIC's ratings follows at the end of this press release.
KEY RATING DRIVERS
The upgrade of CIC's IDR reflects the high probability of support that Fitch believes the entity would receive from its parent Banco de Bogota, should it be needed. CIC is considered a 'core' subsidiary of its parent, based on its meaningful size (23.3% of Banco de Bogota's consolidated assets as of
The Stable Outlook reflects that CIC's IDR will likely remain unchanged over the foreseeable future assuming that Banco de Bogota keeps its current risk profile.
CIC is a company incorporated in the
CIC exhibits a solid financial performance explained by the performance of its operating subsidiaries. The entity's bank subsidiaries are consistently among the most profitable banks in each country, driven by a well-developed revenue structure that balances interest income and fees and commissions, good operating efficiency, and low loan impairment charges.
CIC's capitalization declined after the acquisition of Grupo Financiero Reformador (
Debt levels at the holding company (CIC) are relatively high (double leverage of 149%) but is compensated by good debt service coverage ratios and the possible support from Banco de Bogota, it should be required.
Changes in CIC's IDR and Support Rating would reflect changes in Banco de Bogota's ability and/or propensity to provide support, in case of need. The IDRs would move in line with Banco de Bogota's rating unless the correlation of CIC subsidiaries increases, which may result in a differentiation of the rating of CIC compared to Banco de Bogota.
Fitch has taken the following rating actions:
--Foreign currency long-term IDR upgraded to 'BBB+' from 'BBB'; Outlook Stable;
--Foreign currency short-term IDR affirmed at 'F2';
--Support rating affirmed at '2'.
CIC subsidiaries' national ratings were unaffected by these actions.
Additional information is available at 'www.fitchratings.com'.
--'Global Financial Institutions Rating Criteria' (
--'Rating FI Subsidiaries and Holding Companies' (
Global Financial Institutions Rating Criteria
Rating FI Subsidiaries and Holding Companies
Source: Fitch Ratings
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