S&P affirms Hipotecaria

Standard & Poor's said it affirmed the BB- corporate credit rating global scale and mxA-/mxA-2 national scale rating and senior unsecured debt ratings on Hipotecaria Su Casita SA de CV Sofom ENR, and removed them from CreditWatch with negative implications where they were placed on May 5.

The outlook is negative.

"The ratings affirmation primarily reflects the agreement signed on May 11, 2009, by Mexican government-related agency Sociedad Hipotecaria Federal S.N.C., commercial banks, underwriters, and six mortgage companies, including HSC," S&P analyst Arturo Sanchez said in a statement.

"In our view, this agreement alleviates HSC's liquidity pressures and reduces its refinancing risk over the next few years. We also think the agreement will allow HSC to focus on containing its increasing nonperforming assets while trying to restore its profitability and adjusted capitalization levels," Sanchez said.

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