Fitch lowers Fucerep

Fitch Ratings said it downgraded Cooperativa de Ahorro y Credito (Fucerep)'s long-term issuer default rating to B- from B and viability rating to b- from b.

The outlook was revised to stable from negative.

The agency said the actions reflect weak overall financial performance in the recent past, which has posted net losses for five consecutive years, and significantly affected its capital levels.

“Fucerep's IDR and VR are highly influenced by its small size within the Uruguayan financial system and the challenges the cooperative faces to improve its financial performance,” Fitch said in a news release.

“Additionally, the ratings also consider the cooperative's increased risk appetite as it diversifies its operations into riskier businesses, and its deteriorating asset quality.”

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