Moody’s trims AlphaCredit

Moody’s Investors Service said it downgraded Alpha Holding, SA de CV’s long-term global local and foreign currency issuer ratings, its corporate family rating and long-term foreign-currency senior unsecured debt ratings to B3 from B2.

“The downgrade of AlphaCredit’s ratings to B3 from B2 reflects Moody’s assessment of the substantial decline in capitalization and weak profitability prospects that will be limited by a slow economic recovery in Mexico. In addition, the rating action captures the operational challenges AlphaCredit has faced in its main business of payroll-linked loans in Mexico that have resulted in higher-than-expected loan delinquencies and write-offs,” the agency said in a press release.

The outlook is negative.

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