Moody’s cuts AlphaCredit

Moody’s Investors Service said it downgraded Alpha Holding SA de CV’s (AlphaCredit) long-term global local- and foreign-currency issuer ratings, its corporate family rating and long-term foreign-currency senior unsecured debt ratings to B2 from B1.

“The downgrade of AlphaCredit’s ratings to B2 from B1 reflects Moody’s assessment of the company’s weakened asset quality following the disclosure of a considerable portfolio of loans that are past due for more than 180 days, whose recoverability could be constrained by the effects of the coronavirus pandemic on Mexico’s economic growth, including a sharp GDP contraction in 2020 and a limited recovery in 2021,” Moody’s said in a press release.

The agency also changed the outlook to negative from positive because Moody’s said it sees a more challenging operating environment pressuring the assets in the company’s portfolio that are performing.

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