Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers C > Headlines for Credito Real, SAB de CV, Sofom, ENR > News item |
S&P cuts Credito Real
S&P said it downgraded Credito Real SAB de CV Sofom ENR and its unsecured debt rating to BB- from BB as well as the subordinated perpetual notes to B- from B. Concurrently, the agency lowered the national scale issuer rating to mxA- from mxA.
“Credito Real's downgrade reflects the lower-than-expected year end 2020 and first-quarter 2021 results and very difficult conditions for the coming months. During 2020, several company's financial metrics eroded due to Mexico's deep economic contraction, which resulted in low origination, higher funding costs, and a jump in delinquencies,” S&P said in a press release.
“As of March 2021, Credito Real's return on average assets (ROAA; measured as core earnings to adjusted asset) plunged to 0.31% from 2.14% as of the same period of 2020. The drop was due to Credito Real's net interest margin of 9.32%, down from the last three fiscal year average of 16.4%, the increase of up to 200 basis points (bps) in funding costs, and various expenses at the leasing business,” the agency noted.
The outlook is stable.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.