Credomatic’s credit card businesses and banking operations in the Central American countries, with the exception of Panama, CIC is positioned to have one of the strongest financial franchises in the region. The group is a leader in the credit card business, while having a dominant market share in the acquiring and issuing businesses.
Fitch Ratings has affirmed Credomatic International Corporation’s (CIC) long-term Issuer Default Rating (IDR) at ‘BBB+’ and Support Rating at ‘2’. The Rating Outlook is Stable.
CIC’s subsidiaries exhibit a solid financial performance since they consistently rank among the most profitable banks in each country. The retail approach allows them to have a high net interest margin and generate cross-selling fee income. Credit cards issuers’ subsidiaries contribute significantly to revenues. In the short term, Fitch expects CIC’s subsidiaries’ profitability will continue to be high and will allow them to sustain credit growth and investment objectives.
BAC-Credomatic has developed an adequate costumer deposit base in each country where it operates. This is reflected in the participation of deposits in total funding and low concentration by largest depositors. CIC’s subsidiaries’ ample and stable deposit base is favored by third party payroll-deductible loans and by its leadership in the credit card market, which motivated a large number of companies to have demand deposits within operations of the group. Customer deposits account for 73.2% of CIC’s total funding as of March 2015, well balanced between companies and individuals.
CIC is an exempt holding company incorporated in the British Virgin Islands and groups BAC-Credomatic’s credit card businesses and commercial banking operations in each Central American country, with the exception of Panama. BAC-Credomatic is one of the largest financial groups in Central America. As of March 2015, CIC consolidates $13.2 billion in assets and is a leader in the credit card business, while having a dominant market share in the acquiring and issuing businesses.
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