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S&P revises outlook on Mexico's Union de Credito Credipyme

S&P Global Ratings on Feb. 20 revised the outlook for the long-term rating of Union de Credito Credipyme, S.A. de C.V. to stable from negative.

At the same time, S&P affirmed the mxBB+ long- and mxB short-term national scale issuer credit ratings of the Mexico-based nonbank financial institution.

The outlook revision reflects less pressure on Union de Credito Credipyme's capital and profits achieved through higher requirements for unproductive asset provisions. The entity was able to turn a foreclosed asset from its balance sheet into a productive asset, which erases pressure on its profitability and capitalization, S&P said.

The entity maintains a limited presence in the Mexican financial system despite high growth in its credit portfolio. However, these factors could continue to present high volatility in its asset quality indicators in the next 12 months, S&P said. The liquidity profile of the entity also continues to limit its ratings.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.