Fitch Ratings on Dec. 15 affirmed Financiera Fundeser SA's BBB-(nic) long- and F3(nic) short-term national ratings and Financiera Finca Nicaragua SA's BBB+(nic) long- and F2(nic) short-term national ratings.
The outlook on the long-term rating for both companies is stable.
For Financiera Fundeser, the company's national ratings and issuances are highly influenced by its modest franchise and increased delinquency rates. "At the same time, they weigh recent net losses, their healthy capitalization and diversified funding structure," the rating agency said.
Financiera Fundeser, which has been regulated since 2014, has a modest franchise within Nicaragua's financial system, and its business model is focused on microfinance, with an emphasis on agriculture and business, Fitch noted.
As for Financiera Finca, known as Finca Nic, its national ratings are highly influenced by its limited franchise in Nicaragua while its business model focuses on people with limited resources and emphasizes financing to micro- and small entrepreneurs.
Fitch noted the ratings of Finca Nic take into consideration "its good credit quality, recovered financial performance, adequate funding and liquidity, as well as its solid capitalization."