S&P shifts Banca Mifel view to negative

S&P said it revised the outlook for Banca Mifel SA to negative from stable.

“The outlook revision stems from our belief that the bank could face capital level pressures in the next 24 months. Given that we expect the bank’s asset quality to deteriorate amid the pandemic-induced economic crisis, the bank will be forced to generate additional loan-loss reserves. This will take a heavy toll on Mifel’s operating revenue, and ultimately, bottom-line results,” S&P said in a press release.

The agency also affirmed the bank’s BB- global scale rating, the mxA- national scale rating and the B- rating on its subordinated notes.

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