The savings and loan bank ADOPEM, S.A. has increased its national long-term risk rating to A+ (dom) with a stable outlook, up from a score of A (dom).
The information was announced by Fitch Ratings, the international ratings agency, which also confirmed the national short-term risk rating at F1 (dom).
Fitch Ratings noted that this increase in ADOPEM’s rating is evidence of the bank’s capacity to maintain the growth of its portfolio while conserving its quality.
“…It considers that in addition to its own know-how, Banco ADOPEM has benefited from the direct transfer of know-how from its international partners thanks to its shareholding by the BBVA Microfinance Foundation -as the majority partner- and by the International Finance Corporation, in addition to the European Investment Bank” said the report.
It highlighted the bank’s success in maintaining its default rate below the average for the national financial system, despite the economic situation and the high risk profile of its debtors. It also noted that the capacity to maintain the growth of the holding was +17.8% AGR to May, profitability was AGR in EAT of +61 to May, while the outlook for its financial position continued to be robust.
The bank follows a consistent policy of liquidity in order to maintain a good deposit base to enable it to fund its operations, reinforce the deposit renewal rate and reduce their concentration. In addition, the long-term nature of its financing commitments compared to its portfolio period allows it considerable rollover in its credit operations, which Fitch regards as signaling a lower exposure to liquidity risks in tune with its business model.