MEXICO CITY (S&P Global Ratings) April 5, 2019--S&P Global Ratings withdrew at issuer's request its 'BB-' long- and 'B' short-term global scale issuer credit ratings (ICRs) on Banco Agromercantil de Guatemala S.A. (BAM). At the same time, we withdrew our 'BB-' issue-level rating on Intertrust SPV (Cayman) Ltd.' s $300 million senior notes due April 10, 2019. Intertrust SPV acts as trustee of the Agromercantil Senior Trust. BAM fully guarantees the notes, so the rating on them was the same as the long-term ICR on the bank. At the time of the withdrawal, the outlook was stable. At the time of the withdrawal, the global scale rating on BAM reflected our view of it as a core subsidiary of Grupo Bancolombia. This was because of BAM's integration with the overall group strategy and its business risk similar to that of its parent group. The rating on BAM also incorporated its large market share in Guatemala, particularly in the corporate lending segment, which helps the bank to maintain operating revenue stability. Despite the uncertain economic and political conditions, the bank's deposit-based funding is one of its main strengths, and it provides BAM with enough liquidity to face short-term obligations. Additionally, BAM's quality of capital has remained sound due to a high-quality capital base that consists of paid-in capital, reserves, and retained earnings. On the other hand, the high share of dollar-denominated loans in the portfolio is a significant vulnerability for the bank if the Guatemalan quetzal weakens against the dollar. Nonetheless, the quetzal-dollar exchange rate has remained stable during the past few years.
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