Bancolombia S.A. Announces That Moody's Investors Service Upgraded Its Bank Financial Strength Rating from D to D+

MEDELLIN, Colombia, May 13  /PRNewswire-FirstCall/ -- Moody's Investors Service ("Moody's") upgraded Bancolombia S.A.'s ("Bancolombia") financial strength rating ("BFSR") from D to D+. The outlook on the BFSR was changed from "positive" to "stable".

Moody's announced in its press release that, "The upgrade of the bank's BFSR was based on the bank's improved financial fundamentals and franchise value, as well as the successful integration of Banco Agricola, S.A. (Banagricola) of El Salvador. Through this process, Bancolombia has continued to generate stable core earnings, supported by an ample net interest margin and improved operating efficiency."

Moody's also commented that, "Bancolombia maintains a strong franchise in all areas of traditional banking, as the largest bank in both Colombia and El Salvador. The bank holds leading positions in retail banking and commercial lending, with a broad and stable core deposit base. In Colombia, the bank has defended its market share of 19% of deposits and 22% of gross loans, as of year-end 2008. In El Salvador, Banagricola maintained its largest market shares by far of 30% in loans and deposits, with solid profitability and asset quality indicators through the first quarter of 2009."

Also, Bancolombia's long-term and short-term local currency deposit ratings of "Baa2" and "Prime-3," as well as the long-term and short-term foreign currency deposit ratings of "Ba2" and "Not Prime," were affirmed. Bancolombia's foreign currency subordinated debt rating of "Baa3" was also affirmed with a stable outlook.

  Sergio Restrepo
  Executive VP
  Tel.: [phone]

  Jaime A. Velasquez
  Financial VP
  Tel.: [phone]

  Juan E. Toro
  IR Manager
  Tel.: [phone]


DATASOURCE: Bancolombia S.A.



CONTACT: Sergio Restrepo, Executive VP, +011-574-4041424, or Jaime A.

Velasquez, Financial VP, +011-574-4042199, or Juan E. Toro, IR Manager,

+011-574-4041837, all of Bancolombia S.A. 



Web site:  http://www.bancolombia.com.co/ 

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