Fitch Ratings on Sept. 29 affirmed CrediQ SA de CV's long- and short-term national ratings atBBB-(slv) and F3(slv), respectively, with a stable outlook on the long-term rating.
According to Fitch, the company's ratings primarily reflect challengesassociated with its business model specialized in auto financing, which is sensitiveto environmental conditions.
The ratings also consider lower flexibility in the firm's fundingstructure, as well as its strong profitability, improvements in credit quality andadequate capitalization.
The rating agency noted that CrediQ's nonperforming loan ratiofell to 2.2% as of June from 3.9% in December 2015, driven by improvements in thecompany's collection management.
Fitch expects the firm's capitalization to remain adequate asa result of strong internal capital generation and moderate growth in the company'soperations.