DBRS alters Cajamar trend to stable

DBRS said it changed the trend to stable from negative and confirmed the ratings of Grupo Cooperativo Cajamar, Cajamar Caja Rural, Sociedad Cooperativa de Credito and Banco de Credito Social Cooperativo SA. The long-term issuer ratings remain at BB (high)

“The change of the trend to stable from negative reflects DBRS Morningstar’s view that the impact of Covid-19 on the group has been less than originally anticipated, especially with regard to GCC’s asset quality and earnings. Notably, as of end-March 2022 GCC has continued to reduce its problematic assets (down 28% YoY) and profitability levels, albeit weak, are back to pre-Covid levels,” the agency said in a press release.

The agency said it anticipates the group’s risk profile will continue improving given expected additional efforts to clean-up its balance sheet.

“Nevertheless, asset quality risks do remain, following the full removal of government support measures and following the Russian invasion of Ukraine,” DBRS said.

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