S&P: Metrofinanciera unchanged

Standard & Poor's said it s ratings on Metrofinanciera SA de CV SFOL (FC: BB-/stable, LC: BB-/stable, CaVal: mxBBB+/stable/mxA-2) will not be affected by Crédito y Casa SA de CV Sociedad de Objeto Limitado's confirmation that Metrofinanciera is negotiating to buy Crédito y Casa.

Although an agreement has not been reached, if the companies were to sign a definitive accord, the agency said it will analyze the mix of debt and equity used to finance the transaction as well as the new company's business plan and the implications on its financial performance.

If the transaction is highly leveraged, this could result in negative pressure on the current ratings, S&P said, noting that potential concerns include increased leverage negatively affecting capitalization and profitability ratios, reduced access to financial markets considering an important refinancing risk and the ability to unify the acquired operations.

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