PA - Banco Security
PA - Banco Security
PA - Banco Security
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BANK CREDITORS<br />
As of December 31, 2010 Grupo <strong>Security</strong> has no debt with banks and financial institutions.<br />
DEPENDENCE ON DIVIDENDS FROM SUBSIDIARIES<br />
Grupo <strong>Security</strong> is the parent company of a group of companies that receives its revenues in<br />
the form of dividends distributed by its subsidiaries. The results of the subsidiaries therefore<br />
provide it with the flexibility to set their dividend policies according to their needs. This point<br />
has been strengthened by the diversification of revenues developed by the Company, by having<br />
subsidiaries with business in various sectors of the financial industry. The most important asset<br />
is <strong>Banco</strong> <strong>Security</strong> which provided it with 99% of the dividends received in 2010. The solvency<br />
rating of <strong>Banco</strong> <strong>Security</strong> is AA-, granted by both Feller-Rate and Fitch Ratings, with stable outlook.<br />
The second largest dividend flow for Grupo <strong>Security</strong> in 2009 came from Factoring <strong>Security</strong>. The<br />
solvency rating of Factoring <strong>Security</strong> is A+, granted by both Feller-Rate and International Credit<br />
Ratings, with stable outlook. With respect to the Group’s insurance companies, Vida <strong>Security</strong> is<br />
rated as AA- by Fitch Ratings and Feller-Rate, while Penta <strong>Security</strong> is rated as A+ by Fitch Ratings<br />
and AA- by International Credit Ratings.<br />
RISK FACTORS<br />
- Strong competition in all the group’s businesses<br />
The businesses in which Grupo <strong>Security</strong> participates are characterized for being highly competitive,<br />
with a tendency to reducing margins. Mergers between companies and the continuous alliances<br />
between competitors are evidence of this. While this presents potential difficulties for companies<br />
in producing profits, it is believed that in the case of Grupo <strong>Security</strong>, the potential negative<br />
effects are offset by its strong brand image in its objective market, its high degree of customer<br />
loyalty and the niche strategy followed.<br />
This makes it possible to provide personalized and specialized products and services to its<br />
customers, a difficult task for larger entities which also focus on the more mass segments of the<br />
population. This also generates a favorable position for facing future competition.
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