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Fitch upgrades Metrofinanciera's rating; outlook revised to stable

Fitch Ratings on Dec. 13 upgraded Metrofinanciera SAPI de CV SOFOM Entidad Regulada's rating as primary financial asset manager to AAFC3-(mex) from AAFC4(mex). The outlook was revised to stable from positive.

The rating change was based on the firm's effective implementation of applicable rules for regulated financial entities, in addition to its actions to recover non-productive assets with tangible results, as well as its management and operational team, Fitch said.

The rating agency also considered the stability and quality of the firm's commercial loan portfolio and improvements carried out in its business continuity plan.

"Emergency procedures were significantly improved, resulting in shorter response and recovery times. Likewise, the entity implemented the use of new technologies. ... This reduces costs to locate borrowers and allows to debug and update contact databases efficiently and reduce borrowers' response time in recovery or restructuring processes," Fitch said.

The company's rating, however, continues to be limited by its weak financial condition, Fitch noted.