OREANDA-NEWS. April 29, 2016.  Fitch Ratings has placed selected International Scale ratings of Banco de Bogota S.A. (Bogota), Bancolombia S.A. (Bancolombia) and certain related entities on Rating Watch Negative, following the release of their latest financial reports which reflected weaker than expected capital metrics. The two banks and their affected related entities are:

Banco de Bogota S.A.;
--Grupo Aval Acciones y Valores S.A.;
--Grupo Aval Limited;
--Corporacion Financiera Colombiana S.A.; and
--Credomatic International Corporation (CIC).

Bancolombia S.A.
--Bancolombia Panama S.A.;
--Bancolombia Puerto Rico International Inc; and
--Banistmo S.A.

The National Scale ratings of these entities in Colombia, Panama and Puerto Rico are not affected, because Fitch's baseline scenario, that a potential downgrade in the global ratings, if any, would be limited to one notch, would not lead to altering the ratings.

The Rating Watch Negative reflects that the banks' ratings could be downgraded after Fitch completes a full review of their capital adequacy metrics. These were particularly affected by the significant depreciation in the local currency, which boosted its USD-denominated risk-weighted assets. The Rating Watch Negative will be resolved over the next few months after Fitch forms an opinion on the expected capital metrics of Bancolombia and Bogota, and the consistency of such metrics with the current rating levels.

Fitch has published Rating Action Commentaries (RACs) for each of these banks, which are available on www.fitchratings.com. These RACs include each issuer's key rating drivers and sensitivities, as well as the list of all rating actions taken.

Fitch has placed the following ratings on Rating Watch Negative:

Bancolombia S.A.
--Long-Term foreign currency Issuer Default Rating (IDR) 'BBB+'
--Short-Term foreign currency IDR 'F2';
--Long-Term local currency IDR 'BBB+';
--Short-Term local currency IDR 'F2';
--Viability rating 'bbb+';
--Senior unsecured debt 'BBB+';
--Subordinated debt 'BBB'.

Bancolombia Panama S.A.
--Long-Term IDR 'BBB+';
--Short-Term IDR 'F2';
--Long-Term Deposits 'BBB+';
--Short-Term Deposits 'F2'.

Bancolombia Puerto Rico International Inc.
--Long-Term IDR 'BBB+';
--Short-Term IDR at 'F2'.

Banistmo S.A.
--Long-Term IDR 'BBB+';
--Short-Term IDR 'F2'.

Banco de Bogota, S.A.
--Long-Term foreign currency IDR 'BBB+';
--Short-Term foreign currency IDR 'F2';
--Long-Term Local Currency IDR 'BBB+';
--Short-Term local currency IDR 'F2';
--Viability rating 'bbb+';
--Senior unsecured debt 'BBB+';
--Subordinated debt 'BBB'.

Grupo Aval Acciones y Valores S.A.
--Long-Term foreign currency IDR 'BBB';
--Long-Term local currency IDR 'BBB'.

Grupo Aval Limited
--Senior unsecured guaranteed debt 'BBB'.

Corporacion Financiera Colombiana S.A. (Corficolombiana)
--Long-Term foreign currency IDR 'BBB+';
--Long-Term local currency IDR 'BBB+';
--Short-Term foreign currency IDR 'F2';
--Short-Term local currency IDR 'F2'.

Credomatic International Corporation (CIC)
--Long-Term foreign currency IDR 'BBB+';
--Short-Term foreign currency IDR 'F2'.