Fitch Ratings has recently announced affirmation of the Banco Internacional de Costa Rica’s Issuer Default Rating. The rating was issued at BB+ and was issued following a peer review.
BICSA was originally created as a venue for extending operations outside Costa Rica and beyond state-owned banks. Since then, BICSA has experienced significant success and has extended its portfolio outside Costa Rica while maintaining excellent profitability and asset quality.
Currently, funding for BICSA comes primarily from term deposits, bank loans, and financing. The bank’s profitability at the moment is below the system’s average, but is somewhat constrained due to a corporate focus. The conservative underwriting standards of BICSA, along with good loan diversification has benefitted its asset quality. At the same time, the bank has managed to maintain a low rate for loans of 90+ days past due over the course of the past five years.