Fitch Ratings affirmed the long-term and short-term national ratings of the Banesco Banco Multiple, SA (Banesco BM) at ‘A+(dom)’ and ‘F1(dom)’, respectively.
The long-term rating outlook is stable. At the same time he affirmed at ‘A- (dom)’ the rating of the subordinated debt issue for up to DOP1,000 million.
Banesco BM’s ratings are based on Fitch’s assessment of the ability and propensity of its sister company, Banesco (Panamá), SA to provide it with support if necessary.
Although the direct ownership of 99.9% of the bank’s shares belongs to its parent company, Banesco Holding Latin America, SA (BHL), Fitch in its evaluation considers that the possible support would come from the branch in Panama, SA Banesco, BHL’s main operating subsidiary.
This is due to the broad operational synergies and the strategic role in the group that the dominican bank maintains with Banesco.
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Maria Clara Alviarez executive president of the entity, assures that maintaining this rating is of great value to Banesco at this time, since it is an outstanding result among the companies that are measured in the country and have an A+ rating (dom) despite The international crisis caused by COVID-19 has posed a great unprecedented economic challenge for companies and a milestone for the recent history of mankind.
The total assets of the banking entity in the Dominican Republic amounted in 2019 to RD$22,576 million; 5.5% more than the previous year.
Also, there was a growth of 15.1% in its credit portfolio, therefore, it continues to consolidate, optimizing profitability and responding to the financing needs of the various national sectors.
Banesco began its operations in 2011 and has a presence in Santo Domingo, Santiago and Bávaro.
