Institutional Rating

Details

The institutional rating report analyzes the following areas:

CONTEXT

• Vision and Strategic Positioning

• Macroeconomic Context

• Legal and Regulatory Environment

• Competitive Environment

STRATEGIC RISK AND GOVERNANCE

• Senior Management

• Corporate Governance and Decision Making

• Ownership and Board of Directors

CREDIT RISK

• Credit Risk per Credit type (Agro, Production, Consumer, SME, others)

• Supervision

• Portfolio Quality (Portfolio under Risk and Penalties, Operating Risks and Provisions, and Collection System)

FINANCIAL RISK

• Profitability

• Solvency

• Liquidity and funding

• Market risk

OPERATIONAL RISK

• Internal control

• Operational risks

• Management information systems

α+ α

Those financial institutions with high long-term institutional viability and high financial capacity. Excellent performance. Low risk or well-managed risk in short and medium term.

α- β+

Those financial institutions with good long-term institutional viability and good financial capacity. Good performance. Moderate risk or well-managed short-term risk.

β β-

Those financial institutions with moderate long-term institutional viability and moderate financial capacity. Satisfactory performance. Moderate to medium-high risk.

γ+ γ

Those financial institutions with low long-term institutional viability and insufficient financial capacity. Weak or poor performance. High to very high risk.

Sub-rating: Financial Profile. Opinion on institution's financial strength and ability to meet its financial obligations.

Benefits

The institutional rating allows your entity to:

Identify opportunities for improvement in areas that are key in any financial institution
Compare its performance against best practices
Systematize information so that it isin line with international standards
Promote continuous, specialized, and timely monitoring of internal development
Provide feedback on management and strategic planning (a useful report for Management and Board of Directors).