Banco Popular Dominicano received an increase to “AAA” in its solvency rating and that of its long-term bonds, according to the latest report issued by the risk rating company Feller Rate, becoming the first bank with Dominican capital to obtain this major financial achievement.
This score is the highest rating that a banking entity can receive in the world and obtaining it is a milestone for Banco Popular and the Dominican Republic.
It is the only Dominican bank that Feller Rate has evaluated with AAA, highlighting its leadership position in the market, its capacity to generate income and its prudent risk management.
Praise for strategy and operational efficiency
According to the report by the rating agency Feller Rate, Popular is recognized as having a strong capacity to generate income, even in periods of high challenges derived from the pandemic and external macroeconomic factors. Likewise, it highlights the robust practices in risk management, an adequate patrimonial support and the wide diversification of financing sources.
Feller Rate highlights the strategy used by the bank, which allows it to have adequate levels of profitability and competitive advantages, based on its digital transformation. Likewise, it indicates in its report that “the bank’s results are robust and present an upward trend in the last three years, increasing its distance from peer banks and the average commercial bank.”
The report highlights how Popular has incorporated new service models, product innovation and operational efficiency, with a focus on the migration to remote service for SMEs, promotion of digital sales and the use of advanced analytics.
Likewise, he highlighted the use of an internal policy of countercyclical provisions to determine the expense for provisions, based on internal risk models, to face the potential risk of assets and contingencies associated with variations in the economic cycle.
Feller Rate pointed out that Popular “has wide access to financing sources, highlighting an important presence of sight and savings deposits”, thus observing an adequate atomization and stability.