Agencies reaffirm A+ and AA- (dom) rating for the Cibao Association

Santiago. – The Feller Rate and Fitch Ratings agencies ratified the A+ and AA- (dom) long-term national ratings, respectively, for the Cibao Savings and Loan Association (ACAP) for its strong equity support, good asset quality, adequate profitability, as well as ample funding and liquidity.

The long-term outlook for the ratings is stable, according to two reports issued by the agencies. In the case of Feller Rate, the report indicates that ACAP has managed to capture economies of scale with indicators that are gradually improving.

In this sense, it maintains that the financial entity has a solvency indicator of 25.8% as of April 2022 and that the level of overdue portfolio was just 1.4% as of May 2022. “For its part, the coverage of provisions calculated as stock of provisions on non-performing portfolio, was maintained at adequate levels for the operation”, he highlights.

For its part, Fitch Ratings specifies that the portfolio coverage overdue at 90 days in ACAP is 197.4%, much higher than the average of the last four years of 145.8%. “Fitch expects delinquency levels to converge to pre-pandemic levels in the medium term as economic activity continues to recover.”

It stands out that the indicator of loans to deposits reached 86.6%, which shows that ACAP’s liquidity remains comfortable. “The concentration in the uptake of ACAP is low. Its top 20 depositors represented 4.5% of total deposits at the end of March 2022”, he underlines.

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