Fitch Ratingson April 26 assigned foreign and local currency long-term issuer default ratingsof BB+ and short-term issuer default ratings of B to Crédito Real SAB de CV Sociedad Financiera de Objeto Múltiple.
Fitch also assignedthe company national long- and short-term ratings of A+(mex) and F1(mex), respectively.The long-term ratings outlook is stable.
The issuer default,national and senior debt ratings reflect the company's moderate franchise in Mexico'sfinancial market, well-proven business model and gradual diversification of itsloan portfolio to segments different than payroll loans, Fitch said. The ratingsalso reflect the company's recurring and sustained profitability ratios that underpinits adequate capitalization metrics, amid a high growth strategy, and containedimpaired loan ratios that compare favorably against its closest peers.
However, theratings are constrained by the risk of entry into new businesses and countries,the wholesale nature of its funding base and the important concentrations of itsdebt maturities, as well as by the political and operational risks which are inherentto the payroll loans segment in Mexico, Fitch noted.