Fitch States National Ratings for Corficolombiana and Fiduciaria Corficolombiana; Stable Outlook

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1 Fitch States National Ratings for Corficolombiana and Fiduciaria Corficolombiana; Stable Outlook Fitch Ratings Bogota (June 30, 2017): Fitch Ratings stated the long and short-term national ratings for Corporacion Financiera Colombiana S.A. (Corficolombiana) and Fiduciaria Corficolombiana S.A. (Fiduciaria Corficolombiana). The Outlook of the long-term rating is Stable. The detail of the ratings is presented at the end of this notice. KEY FACTORS OF THE RATINGS Corficolombiana: The ratings for Corficolombiana reflect the support that would be obtained from Grupo Aval, if necessary. In Fitch s opinion, the will and capacity of its controlling entity to support Corficolombiana remain unchanged, as long as it continues to be its main shareholder. For the agency, the long-term capital investments and the important treasury activity of Corficolombiana make it essential for the general strategy of Grupo Aval. Thus, the entity allows the main financial conglomerate of Colombia to have a relevant presence in the real sector and be a significant player in the local capital market. Corficolombiana is an investment holding entity that controls or keeps significant interest in various companies in Colombia and abroad. Additionally, it has invested in agroindustry and hotels. The entity has a conservative investment policy and positions itself as one of the most active actors in the secondary market and liquidity operations. Fiduciaria Corficolombiana: The ratings for Fiduciaria Corficolombiana are aligned with those of its shareholder, Corficolombiana and are based on the support of Corficolombiana that owns 94% of the shareholding interest in the trust company. In Fitch s opinion, the trust company is considered a fundamental and integral subsidiary of the business of Corficolombiana and Grupo Aval, which results in a high provision of direct or indirect assistance by Corficolombiana, if necessary. According to the above, a breach by the trust company would lead to a high reputational risk for its parent company and for the Group. SENSITIVITY OF THE RATINGS Corficolombiana: Modifications to the ratings of Corficolombiana will depend on movements in the ratings of its controlling entity. A change in Fitch s opinion regarding the importance of Corficolombiana for its main shareholder may affect its ratings. Fiduciaria Corficolombiana:

2 Potential drops in the risk ratings of Fiduciaria Corficolombiana would come from a modification in Corficolombiana s capacity or availability to provide support or from a drop in its ratings, although this is not Fitch s base scenario. Fitch stated the following ratings: Corficolombiana: - National Long-Term Counterparty Rating in AAA(col) Stable Outlook; - National Short-Term Counterparty Rating in F1+(col). Fitch Ratings Contacts: Theresa Paiz-Fredel (Corficolombiana Leading Analyst) Senior Director Fitch Ratings, Inc. 33 Whitehall Street New York, NY Andres Marquez (Fiduciaria Corficolombiana Leading Analyst and Corficolombiana Secondary Analyst) Director Ext 1220 Jairo Espejo (Fiduciaria Corficolombiana Secondary Analyst) Analyst Ext 1980 Alejandro Garcia (President of the Rating Committee) Managing Director Media relations: Monica Saavedra, Bogota. Tel Ext monica.saavedra@fitchratings.com The ratings indicated were requested by the issuer or on its behalf and, therefore, Fitch has received the relevant fees for the provision of its rating services. Further information available at and Methodologies applied: - Global Rating Methodology of Non-Bank Financial Institutions (October 21, 2016); - National Ratings Methodology (March 27, 2017). Annex 1. Regulatory Information NAME OF ISSUER or ADMINISTRATOR (i) Banco de Occidente S.A.

3 (ii) Corporacion Financiera Colombiana S.A. (iii) Fiduciaria Corficolombiana S.A. MINUTES NUMBER 4787 COMMITTEE DATE June 29, 2017 PURPOSE OF THE MEETING COMMITTEE MEMBERS Periodic Review Alejandro Garcia Theresa Paiz Fredel Rolando Martinez Larisa Arteaga Mark Narron The CVs of the Members of the Technical Committee may be consulted on the webpage: %20Lista%20Comite%20Tecnico.pdf The credit risk rating of Fitch Ratings Colombia S.A. Sociedad Calificadora de Valores constitutes a professional opinion and at no time involves a recommendation to buy, sell or maintain a security, and it does not constitute a guarantee of compliance of the obligations of the rated entity. In situations where applicable, for the assignment of this rating, Fitch Ratings considered the aspects mentioned in article 4 of Decree 610/2002, in accordance with article 6 of the same Decree, now incorporated in articles and , respectively, of Decree 1068/2015. Annex 2. Definitions of National Rating Scales NATIONAL LONG-TERM CREDIT RATINGS: AAA(col). The 'AAA' National Ratings indicate the highest rating assigned by Fitch on the national rating scale. This rating is assigned to issuers or obligations with the lowest expectation of default risk compared to all other issuers or obligations in the same country. AA(col). The 'AA' National Ratings denote expectations of a very low default risk compared to other issuers or obligations in the same country. The default risk differs only slightly from that of the issuers or obligations with the highest country ratings. A(col). The 'A' National Ratings denote expectations of a low default risk compared to other issuers or obligations in the same country. However, changes in economic circumstances or conditions may affect the timely payment capacity to a greater extent than it would in the case of financial commitments within a higher rating category. BBB(col). The 'BBB' National Ratings indicate a moderate default risk compared to other issuers or obligations in the same country. However, changes in economic circumstances or conditions are more likely to affect the timely payment capacity than in the case of financial commitments within a higher rating category. BB(col). The 'BB' National Ratings indicate a high default risk compared to other issuers or obligations in the same country. Within the context of the country, payment is to some extent uncertain and timely payment capacity is more vulnerable to adverse economic changes over time. B(col). The 'B' National Ratings indicate a significantly high default risk compared to other issuers or obligations in the same country. Financial commitments are being met but a limited margin of safety remains and the timely payment capacity is conditional on a favorable and stable economic and business environment. In the case of individual obligations, this rating

4 may indicate obligations in trouble or in default with a potential to obtain extremely high recoveries. CCC(col). The 'CCC' National Ratings indicate that default is an actual possibility. The ability to meet financial commitments exclusively depends on favorable and stable economic and business conditions. CC(col). The 'CC' National Ratings indicate that default of some kind seems likely. C(col). The 'C' National Ratings indicate that an issuer's default is imminent. RD(col). The 'RD' National Ratings indicate that, in the opinion of Fitch Ratings, the issuer has experienced a "restricted default" or an unrecovered non-payment of a bond, loan or another material financial obligation, although the entity is not subject to bankruptcy declaration, administrative, liquidation procedures or other formal dissolution proceedings, and it has not ceased its commercial activities in any other way. D(col). The 'D' National Ratings indicate an issuer or instrument in default. E(col). Description: Suspended rating. Obligations that, pursuant to repeated requests by the rating agency, do not have the adequate information. Note: The "+" or "-" modifiers can be added to a rating to denote the relative position within a particular rating category. These suffixes are not added to the 'AAA' category, or to categories below 'CCC'. NATIONAL SHORT-TERM CREDIT RATINGS: F1(col). The 'F1' National Ratings indicate the strongest timely payment capacity of financial commitments compared to other issuers or obligations in the same country. On the Fitch National Ratings scale, this rating is assigned the lowest default risk compared to others in the same country. When the liquidity profile is particularly strong, a "+" is added to the assigned rating. F2(col). The 'F2' National Ratings indicate a good timely payment capacity of the financial commitments compared to other issuers or obligations in the same country. However, the margin of safety is not as great as in the case of the higher ratings. F3(col). The 'F3' National Ratings indicate adequate timely payment capacity of financial commitments compared to other issuers or obligations in the same country. However, this capacity is more susceptible to adverse changes in the short term than that of financial commitments in the higher rating categories. B(col). The 'B' National Ratings indicate an uncertain timely payment capacity of financial commitments compared to other issuers or obligations in the same country. This capacity is highly susceptible to adverse changes in short-term financial and economic conditions. C(col). The 'C' National Ratings indicate that an issuer's default is imminent.

5 RD(col). The 'RD' National Ratings indicate that an entity has failed to meet one or more of its financial commitments, although it continues to fulfill other financial obligations. This category is only applicable to entity ratings. D(col). The D National Ratings indicate a current or imminent payment default. E(col). Description: Suspended rating. Obligations that, pursuant to repeated requests of the rating agency, do not have the adequate information. OUTLOOKS AND OBSERVATIONS OF THE RATING: OUTLOOKS. They indicate the direction in which a rating could possibly move within a period between one and two years. Likewise, they reflect trends that have not yet reached the level that would boost the change in the rating, but that could do so if they continue. They can be: Positive ; Stable ; or Negative. Most Outlooks are generally Stable. The ratings with Positive or Negative Outlooks will not necessarily be modified. OBSERVATIONS. They indicate that there is a greater likelihood that a rating will change as well as the potential direction of such change. They are designated as Positive, indicating a potential improvement, Negative, for a potential drop, or In Progress, if the rating can be raised, lowered or affirmed. An Observation is typically driven by an event, which is why it is generally resolved in a short period. Such an event may be anticipated or may have occurred, but in both cases, the exact implications on the rating are undetermined. The Observation period is typically used to collect more information and/or use information for further analysis. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND STIPULATIONS. PLEASE READ THESE LIMITATIONS AND STIPULATIONS BY FOLLOWING THIS LINK: IN ADDITION, THE DEFINITIONS OF RATING AND THE CONDITIONS OF USE OF SUCH RATINGS ARE AVAILABLE ON OUR WEBSITE THE PUBLIC RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE ON THIS SITE AT ALL TIMES. THE FITCH CODE OF CONDUCT, AND POLICIES ON CONFIDENTIALITY, CONFLICTS OF INTEREST, INFORMATION BARRIERS FOR AFFILIATES, COMPLIANCE, AND OTHER POLICIES AND PROCEDURES ARE ALSO AVAILABLE IN THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER SERVICE ADMISSIBLE TO THE RATED ENTITY OR RELATED THIRD PARTIES. THE DETAILS OF SUCH RATINGS SERVICE, IN WHICH THE LEADING ANALYST IS BASED ON AN ENTITY REGISTERED BEFORE THE EUROPEAN UNION, CAN BE FOUND IN THE SUMMARY OF THE ENTITY ON THE FITCH WEB SITE. Copyright 2017 by Fitch Ratings, Inc. and Fitch Ratings, Ltd. and its subsidiaries. 33 Whitehall Street, New York, NY Phone: , (212) Fax: (212) Total or partial reproduction or distribution is prohibited, except with permission. All rights reserved. In assigning and maintaining its ratings, as well as conducting other reports (including forward-looking information), Fitch relies on factual information received from issuers and their agents and from other sources that Fitch deems credible. Fitch conducts a reasonable investigation of the factual information on which it is based in accordance with its rating methodologies and obtains reasonable verification of such

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