S&P cuts Financiera Independencia

Standard & Poor's said it lowered Financiera Independencia SAB de CV Sofom ENR's counterparty credit ratings to B+ from BB- on the global scale and to mxBBB/mxA-3 from mxA-/mxA-2 on the national scale.

At the same time, the agency lowered its rating on the company's $200 million senior unsecured notes to B+ from BB-. The outlook is stable.

S&P said the downgrade follows the deterioration of Findep's financial performance, which is no longer consistent with a BB- rating. The agency said a more competitive environment, which resulted in higher indebtedness for the company's target clients, and the reliance on external agents for collections management increased charge-offs and the default probability of its loan portfolio since late 2011.

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