trending Market Intelligence /marketintelligence/en/news-insights/trending/J1Cm_gxcGm8U1-owTWZWiQ2 content esgSubNav
In This List

Fitch assigns ratings to Crédito Real

Blog

Banking Essentials Newsletter: 7th February Edition

Case Study

A Bank Outsources Data Gathering to Meet Basel III Regulations

Podcast

Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)

Blog

Banks’ Response to Rising Rates & Liquidity Concerns


Fitch assigns ratings to Crédito Real

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.