Fitch downgrades Findep

Fitch Ratings said it downgraded Financiera Independencia, SAB de CV, Sofom, ENR’s (Findep) long-term local and foreign currency issuer default ratings to B+ from BB-, and the senior unsecured long-term debt ratings to B+ from BB-.

The agency also downgraded Findep and Apoyo Economico Familiar SA de CV, Sociedad Financiera de Objeto Multiple, ENR's long-term national ratings to BBB(mex) from A-(mex), and the short-term national ratings to F3(mex) from F1(mex).

The agency assigned a recovery rating of RR4 to Findep's global unsecured notes. These ratings and the short-term issuer default ratings of B were placed on rating watch negative.

“The rating actions reflect Findep's increased liquidity risk arising from short-term maturities concentration during the first seven months of 2024,” the agency said in a news release.

“In Fitch's view, Findep has not been sufficiently proactive in addressing the refinancing of the remaining portion of the 8% senior notes due in July 2024 which, as of June 2023, represented around 23% of its total debt.”

The company plans to address the bond payments with operational cash flows and credit lines disbursements, and to refinance bank credit lines.

“At present day, Findep faces the execution risk of successfully completing the refinancing process of a significant credit facility,” Fitch said.

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