SANTIAGO.- Fitch Ratings and Feller Rate maintained positive ratings for Asociación Cibao de Ahorros y Préstamos as of July 2024. The ratings AA-(dom), F1+(dom); and A+, respectively, were ratified, both with stable outlooks.
The Fitch Ratings report is based on an operating environment conducive to strong performance within the national financial system. "As of March 2024, it consolidated its position as the second largest entity in its sector, with a 26.1% share of total assets," the report highlights.
Fitch Ratings highlights one of Asociación Cibao's strengths: its "ability to effectively identify and serve its target market in the Cibao region." The agency anticipates that the bank "will continue to demonstrate adequate profitability metrics, supported by loan portfolio growth, effective interest margin management, and the maintenance of stable asset quality.".
Feller Rate believes the financial institution has "strong equity backing, adequate generation capacity, business profile, and risk profile, as well as moderate funding and liquidity." It notes that in the first half of 2024, Asociación Cibao achieved an annualized profitability indicator of 2.3%, exceeding the year-end figure for 2023 and surpassing the return of the association system as a whole (1.7%). This positive performance was supported by provisions and operating expenses.
Similarly, for the evaluated period, Feller emphasizes the controlled delinquency levels, high solvency levels "above the ratios of other actors in the financial system" and adds that, as of March of this year, the solvency indicator was 40.0%, exceeding the average index of the associations (25.9%).
