S&P rates Hipotecaria notes BB-

Standard & Poor's said it assigned its BB- long-term counterparty credit rating to Hipotecaria Su Casita SA de CV Sociedad de Objeto Limitado.

At the same time, S&P said it assigned its BB- debt rating to the company's $150 million senior notes.

The outlook is stable.

S&P added that the ratings assigned to the company are limited by its relatively low coverage of nonperforming assets, its moderate profitability that constrains its capabilities to create additional credit-loss provisions, aggressive growth targets and its exposure to the real estate sector dynamics in Mexico.

The ratings on Hipotecaria are supported by its improving but still limited funding sources for mortgage loans, its good market position and its more sophisticated risk-management capabilities that compare well to other Sofoles, the agency said.

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