SANTO DOMINGO . In their most recent reports, international risk rating agencies Fitch Rating and Feller Rate reaffirmed BHD's rating as a stable bank, based on the strength of its business profile, revenue generation capacity, good risk management, and robust liquidity and funding.
Fitch Ratings rated BHD's long-term national debt at AA+(dom), its short-term debt at F1+(dom), and its subordinated debt issuances at AA-(dom), with a stable outlook. Feller Rate, for its part, confirmed BHD's creditworthiness at "AAA" and also assigned a stable rating to its public offering instruments.
The Fitch Rating report stated that the Bank's operating environment conditions are conducive to the financial system maintaining adequate performance, characterized by stable interest margins and good levels of credit growth.
He also highlighted that BHD's business profile has been solid throughout various economic cycles, which has allowed for stable and resilient revenue generation during these periods. He pointed out that the loan portfolio is adequately diversified, with commercial loans representing 59.53% of total loans, consumer loans 29.03%, and mortgage loans 11.44%.
This international rating agency anticipated that BHD's asset quality will remain stable in the medium term, driven by the entity's growth prospects and its solid risk management practices.
Digitization and asset backup
"The rating awarded to BHD reflects a strong business profile and generation capacity, as well as strength in risk management, funding, and liquidity; coupled with adequate capital backing. The bank has been developing a strategic plan that incorporates a focus on digital transformation and the constant search for business opportunities," stated the Feller Rate press release.
The report states that BHD sets provisions reflecting conservative risk management practices. Capital adequacy levels are adequate, supported by strong earnings generation and the capitalization of a portion of profits. As of March 2024, the solvency ratio stood at 16.9% (18.8% for the comparable industry).
