Fitch Affirms Pichincha Ratings

Fitch has affirmed the foreign-currency issuer default ratings (IDRs) on Ecuador’s Banco del Pichincha’s as B- (minus) for long-term and B for the short-term. The rating outlook is negative. The affirmations reflect the Bank’s “strong franchise in Ecuador, its broad deposit base, its adequate liquidity and its improving financial performance,” according to Fitch. Pichincha’s ratings are above Ecuador’s sovereign ratings (long-term IDR CCC on a negative watch) because of its small exposure to government debt and its sound liquidity backed by high-quality assets. Concerns over tight capital, as well as the prevailing uncertainty in its operating environment, restrain Pichincha’s ratings, said the agency.