(The following statement was released by the rating agency)SAN SALVADOR, October 31 (Fitch) Fitch Ratings has completed a peer review of the following seven Panamanian mid-sized banks: Banco Aliado, S.A. (Aliado), Banco Panameno de la Vivienda, S.A. y Subsidiarias (Banvivienda), Banesco, S.A. (Banesco), Credicorp Bank, S.A. (Credicorp), Global Bank Corporation (Global), Towerbank International, Inc. (Towerbank) and Multibank, Inc. (Multibank).The banks included in this review have assets ranging from $800 million to $4,000 million with operations mainly in Panama. The ratings for this group of banks are based on their intrinsic strength rather than external support. The banks reviewed are owned by domestic investors, excluding Banesco. A full list of rating actions is provided at the end of this release.RATING ACTIONSFitch has affirmed the ratings of Aliado, Banvivienda, Banesco, Global, Multibank and Towerbank after assessing their credit profiles and concluding that their relativities with peers remain unchanged.At the same time, Fitch upgraded Credicorp's long-term national rating as a result of its strengthened risk profile relative to its peers. Credicorp's consistent improvement in capital ratios in recent years, along with its ability to sustain a loan loss reserve coverage coherent with its risk profile, has strengthened its capacity to absorb losses. The combination of consistent, albeit moderate, profitability and the capitalization of profits, boosted the bank's capital ratios. Fitch expects Credicorp to continue performing adequately, maintaining profitability levels similar to industry averages based on outstanding credit quality and good efficiency. The agency estimates that the bank's Fitch Core Capital will remain above 14%, exceeding the banking system's average. KEY RATING DRIVERSCREDICORPCredicorp's ratings are based on the good quality of its assets, relatively high capital ratios and moderate but consistent profitability. The ratings are constrained by its relatively small size, the correlation of its performance with the economic cycle and the moderate levels of concentration on both sides of the balance sheet.ALIADOThe bank's ratings reflect its low risk appetite, consistent strategy, expertise in its target market and good liquidity mostly comprised of bank deposits. The ratings also reflect the bank's ability to maintain its capital position and grow at rates higher than the system average given its conservative dividend pay-out policy. The ratings also take into account the modest but consistent returns, low revenue diversification and relatively high loan and deposits concentrations.BANVIVIENDABanvivienda's current ratings are based on the effective execution of its strategy, adequate capital ratios, steady growth of operating profit and improved credit risk management. The ratings also take into account the structural tenure mismatch, high concentrations in main depositors and low efficiency, which continues limiting profitability.BANESCOBanesco's ratings reflect the bank's accelerated growth in previous years coupled with their customer's adequate payment behaviour. The ratings also factors in the bank's sustained profitability, exceeding the system's average and its moderate capitalization. Also, the ratings convey the bank's links with its related company, Banesco Banco Universal, based in Venezuela. Leveraged by the Venezuelan bank's franchise, Banesco has access to customer deposits of that country, which are fundamental to the business development and define the risk profile of the Panamanian entity. These low-cost deposits have helped sustain profitability and have financed the loan portfolio's rapid growth within Panama. However, their short term nature poses a higher maturity mismatch for the bank relative to its peers, which is closely monitored by the bank.GLOBALGlobal's ratings consistent strategy, improving capitalization ratios, sound positioning within its core market and consistently good asset quality indicators support its ratings. Also, the bank's limited revenue diversification and moderate loan portfolio concentration by size was taken into account. Global has a more diversified funding than the peers included in this review, nevertheless, its franchise is still smaller than that of largest Panamanian banks.MULTIBANKMultibank's national ratings, Issuer Default Ratings (IDR) and Viability Ratings (VR) are based on its clear strategy, consistent performance, good asset quality and adequate capital and reserves. The ratings also factors in the improved funding mix and adequate liquidity, as well as the challenges faced by the bank to improve its market position and increase profitability in a highly competitive market.The support rating of '5' reflects Fitch's opinion that external support for Multibank cannot be relied upon. Thus, there is no reasonable presumption of potential support being forthcoming, which is reflected in the bank's 'No Floor' (NF) rating.TOWERBANKTowerbank's ratings are based on its good and consistent credit quality, high liquidity and progress in its loan portfolio diversification by economic sector. Concentrations in the largest debtors and depositors are still high, despite having fallen in the past year. The bank's ratings are also limited by the tight capital ratios, resulting in a moderate loss absorption capacity, below that of its peers.RATING SENSITIVIESCREDICORPThe Stable Outlook indicates that Fitch does not anticipate changes in the bank's ratings in the foreseeable future. However, over the medium term, a material strengthening of its franchise, competitive position, and diversification, coupled with a sustained or improved financial profile, could gradually affect its ratings positively.Further increases in the concentration of the portfolio's largest debtors and/or related borrowers, could pressure the ratings downward, as they would increase the bank's balance sheet sensitivity to changes in the economic environment. Moreover, a setback in the positive trend reflected by the capital position or lower loan loss reserve coverage could also be negative for the ratings as it weakens the bank's capacity to absorb losses.ALIADOFurther diversification and expansion of the bank's business volume that leads to a material reduction in lending and deposit concentrations as well as to a more diversified revenue structure, could improve the bank's ratings. Given the bank's limited scope to absorb losses, deterioration in the credit quality of main debtors could compromise profitability and/or capital position and consequently negatively affect current ratings.BANVIVIENDAImprovements in Banvivienda's ratings would come from the sustained strengthening in operating profit resulting in sufficient internally generated capital to support asset growth. In addition, further progress in the diversification and quality of the loan portfolio, accompanied by sustained improvements in maturity mismatch would have a positive effect on the ratings.Although it is not Fitch's base case scenario, negative changes in the bank's ratings would result from a sharp deterioration in asset quality that weaken profitability and drive a reduction in the Fitch Core Capital ratio below 10%.BANESCOFurther maturity achieved by the bank's portfolio that  consolidates the customer's good payment behavior to date, would improve the ratings. Also, the ratings would benefit from a reduction in the asset and liability gap, a greater proportion of local deposits as well as extension of the liabilities average tenor.The bank's ratings would be pressured by the deterioration in the portfolio's quality leading to a weakening of the Fitch Core Capital ratio below 10%, as well as significant increases in the volatility of deposits.GLOBALImproved ratings depend on the continued strengthening of the bank's capital, driven by internal capital generation sufficient to sustain the expected growth in assets. The ratings would also be benefited from improvements in revenue diversification, as well as an increase in the net interest margin, resulting in a greater ability to absorb losses in a stress scenario. FGlobal's ratings would be downgraded given a severe deterioration in asset quality or a decline in its financial performance, resulting in a Fitch Core Capital ratio below its recent average.MULTIBANKConsistent progress in the bank's capital, driven by sufficient internal capital generation to support the expected growth of assets would lead to an improvement in the bank's ratings. Additionally, the ratings could improve in the medium term if the bank continues to increase its market share and diversify its revenues while maintaining low concentrations on both sides of the balance sheet and good asset quality.Multibank's ratings could be negatively affected by unexpected deterioration in asset quality that weaken profitability and erode capital and reserves cushion. Additionally, that overstretches the bank's capital (i.e., Fitch Core Capital below 9%) could also be negative. Furthermore, an extension of the average tenor of its loans without a corresponding extension of its liability maturity profile would be a rating negative.TOWERBANKImprovements in Towerbank's ratings would come from a sustained reduction in the concentration on the largest debtors and depositors (top 20 borrowers and depositors below 20%). Also, a stronger Fitch Core Capital ratio (above 12%), could improve the ratings. On the other hand, the ratings would be downgraded given a significant deterioration in asset quality, decline in profitability, and/or distribution of dividends amid aggressive expansion involving a decrease in Fitch Core Capital below 8%. Additionally, impairments in the liquidity position and increases in maturity mismatches could pressure the ratings downward.Fitch upgraded Credicorp's long-term national rating and affirmed its short-term national rating as follows:  Credicorp --National long-term rating upgraded to 'A+(pan)' from 'A(pan); Outlook Stable;--National short-term rating affirmed at 'F1(pan)'.Fitch has affirmed the ratings for Aliado, Banvivienda, Banesco, Global, Towerbank and Multibank as follows:Aliado--National long-term rating affirmed at 'A(pan)'; Outlook Stable;--National short-term rating affirmed at 'F1(pan)'.Banvivienda:--National long-term rating affirmed at 'BBB+(pan)'; Outlook Stable;--National short-term rating affirmed at 'F2(pan)'.Banesco:--National long-term rating affirmed at 'BBB-(pan)'; Outlook Stable;--National short-term rating affirmed at 'F3(pan)'.Global:--National long-term rating affirmed at 'AA-(pan)'; Outlook Stable;--National short-term rating affirmed at 'F1+(pan)'.Towerbank:--National long-term rating affirmed at 'A(pan)'; Outlook Stable;--National short-term rating affirmed at 'F1(pan)'.Multibank:National Ratings--National long-term rating affirmed at 'AA-(pan)'; Outlook Stable;--National short-term rating affirmed at 'F1+(pan)'.International Ratings--Long-term IDR affirmed at 'BB+'; Outlook Stable;--Short-term IDR affirmed at 'B'.--VR affirmed at 'bb+';--Support Rating affirmed at '5';--Support Rating floor affirmed at 'NF';Contact: Primary Analyst (Aliado)Mario HernandezAssociated Director+503 2516-6614Fitch Centroamerica, S.A.Edificio Plaza Cristal, Tercer Nivel, San SalvadorPrimary Analyst (Banvivienda)Alvaro CastroAssociated Director+503 2516-6615Fitch Centroamerica, S.A.Edificio Plaza Cristal, Tercer Nivel, San SalvadorPrimary Analyst (Banesco y Global)Rolando MartinezDirector+503 2516-6619Fitch Centroamerica, S.A.Edificio Plaza Cristal, Tercer Nivel, San SalvadorPrimary Analyst (Credicorp)Marcela GaliciaDirector+503 2516-6616Fitch Centroamerica, S.A.Edificio Plaza Cristal, Tercer Nivel, San SalvadorPrimary Analyst (Towerbank)Carmen MatamorosAssociated Director+503 2516-6612Fitch Centroamerica, S.A.Edificio Plaza Cristal, Tercer Nivel, San SalvadorPrimary Analyst (Multibank)Diego AlcazarDirector+1-212-908-0396Fitch Ratings, Inc.One State Street PlazaNew York, NY 10004Secondary AnalystRene MedranoSenior Director+503 2516-6610Secondary AnalystTheresa Paiz-FredelDirector Senior+1-212-908-0534Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty@fitchratings.com.Additional information is available at '
  www.fitchratings.com'.
 Applicable Criteria and Related Research: --'Global Financial Institutions Rating Criteria' (Aug. 15, 2012);--'Assessing and Rating Bank Subordinated and Hybrid Securities' (Dec. 5, 2012);--'National Scale Ratings Criteria' (Oct. 30, 2013);--'Evaluating Corporate Governance' (Dec. 12, 2012).Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181
 Assessing and Rating Bank Subordinated and Hybrid Securities
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695542
 Evaluating Corporate Governance 
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=694649
 National Scale Ratings Criteria
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720082
 Additional Disclosure Solicitation Status 
  http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=806736
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