Fitch Affirms Bancolombia Panama at 'BBB'; Outlook Positive

Fitch Ratings has affirmed Bancolombia Panama's ratings, including its 'BBB' Issuer Default Rating (IDR). The Rating Outlook is revised to Positive from Stable. A complete list of rating actions follows at the end of this press release.

KEY RATING DRIVERS:

Fitch affirmed Bancolombia Panama's (BP) IDRs in line with those of its parent, Bancolombia. BP is highly integrated with Bancolombia and is a core part of the parent's business strategy in Colombia and Central America. Support from Bancolombia should be forthcoming if needed, and the parent's ability to provide support is reflected in its ratings. Bancolombia's current IDR is 'BBB' with a Positive Outlook. (For more information about Bancolombia's rating drivers please refer to 'Fitch Affirms Bancolombia at 'BBB', Outlook Positive' dated Sept. 16, 2014, available at www.fitchratings.com.)

In addition to today's affirmations, Fitch has withdrawn BP's viability rating (VR). According to Fitch's criteria, Fitch assigns VRs to most commercial banks and bank holding companies. However, it does not assign VRs to subsidiary banks that do not have a meaningful standalone franchise that could exist without the ownership of the parent, which in Fitch's opinion is the case for BP.

RATING SENSITIVITIES

BP's IDRs could be upgraded if Bancolombia's IDR is upgraded; the IDRs would move in line with Bancolombia's rating.

Fitch has taken the following rating actions on Bancolombia Panama:

--Long-term foreign currency IDR affirmed at 'BBB'; Outlook revised to Positive from Stable;

--Short-term foreign currency IDR affirmed at 'F2';

--Viability rating of 'bb' withdrawn;

--Support rating affirmed at '2';

--Long-term deposits affirmed at 'BBB';

--Short-term deposits affirmed at 'F2'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Jan. 31, 2014);

--'Rating FI Subsidiaries and Holding Companies' (Aug. 10, 2012).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732397

Rating FI Subsidiaries and Holding Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679209

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=873635

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