S&P cuts Cofide, lifts notes

S&P said it lowered its long-term issuer credit rating on Corporacion Financiera de Desarrollo SA (Cofide) to BBB from BBB+ and affirmed its A-2 short-term issuer credit rating on the bank.

The outlook was revised to negative.

The agency also lowered the bank's stand-alone credit profile to bb- from bbb-.

On the other hand, S&P raised its subordinated notes rating to BBB- from BB+. The rating on these notes is one notch lower than the bank's issuer credit rating, reflecting subordination risk.

The agency said the downgrade and stand-alone credit profile review reflect the bank’s worsening asset quality and weakening RAC levels. Cofide’s nonperforming loans indicators spiked in the second quarter of 2017 to 9.1% from 2.6% in the first quarter of the year and 0.3% in December 2016.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.