Fitch Ratings affirms Mibanco’s ‘AAA(col)’ rating with stable outlook

Fitch Ratings, second year in a row Mibanco SA., a bank that is part of the Credicorp Group, with long-term and short-term ratings AAA(Col) and F1+(Col), respectively. The rating outlook is ‘Stable’, the highest possible in the local market.

This valuation confirms the rating of the Gender Bond that the bank issued on the Colombian Stock Exchange in January of this year.

“We are proud to maintain consecutive top ratings from Fitch Ratings, especially after challenging years like 2020 and 2021. Building stories of progress and helping to fulfill the dreams of thousands of Colombians who trust us as their financial allies. With this confirmation, Mibanco has been awarded by Fitch Ratings.” It remains the only microfinance institution rated ‘AAA’, which not only reaffirms the market’s confidence in the Bank, but also encourages us to continue working on our ambitious growth plans.”

The rating agency also highlighted the strategic importance of Mibanco’s operation for Credicorp Group to achieve its goal of internationalization in the microfinance segment. As of December 2021, the bank represented 7% of the Holding’s total microfinance line.

Likewise, Fitch Ratings emphasized that the quality of Mibanco’s portfolio is consistent with its high-risk business model focused on microcredit. Thus, at the end of 2021, the 30-day overdue portfolio index stood at 6.0%.

The rating agency highlighted the portfolio’s growth of more than 20%, as well as the reduction in provision expenses over the past year.

Source: Lare Publica

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