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S&P affirms Mexico's Consubanco

S&P Global Ratings on Sept. 23 affirmed 'sglobal scale counterparty credit rating at BB, its national scale credit ratingsat mxA/mxA-2 and its issue-level ratings at BB/mxA.

The outlook remains stable, based on the rating agency's expectationthat the bank will maintain a very strong capital base with a risk-adjusted capitalratio of around 19.7% for the next 18 months.

S&P noted that a change in a payment deduction mechanismfrom some public-sector entities caused a temporary weakening in asset quality forthe Mexican payroll discount lender, but asset quality metrics are expected to returnto historical levels by the end of 2016.

The ratings on Consubanco reflect its weak business position,mainly due to its revenue concentration in payroll discount lending services. Theyalso reflect the company's moderate risk position, below-average funding and moderateliquidity.

S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.