Panama's Banking
Industry Country Risk
Assessment Raised
Standard & Poor's
Ratings Services said it
has raised its banking
industry country risk
assessment (BICRA) on
Panama to 'Group 6' from
'Group 7'
The rating action
primarily reflects an
improved industry risk
profile in the country
that, combined with good
prospects for growth and
continued stability in
the economy, should have
a positive effect on the
banking system, S&P
said.
The improvement in the
banking industry country
risk combined with
positive trends in other
factors specific to an
individual bank could
contribute to a change
in the ratings on a
bank, the ratings agency
said.
The Panamian banking
system enjoys good
client diversification,
since most of the loan
portfolio is retail
oriented, S&P said.
However, the major
potential source of
problems for banks could
be the mortgage
portfolio, despite its
good performance during
the past decade, the
ratings agency said in a
statement. |
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