Moody's lowers Metrofinanciera to MX-3; outlook negative

Moody's de Mexico said it downgraded Metrofinanciera, SA de CV's short-term national scale rating to MX-3 from MX-2 and affirmed its Not Prime global local-currency short-term rating, Baa2.mx national scale issuer and B1 global scale local-currency issuer rating.

The outlook was revised to negative from stable.

The agency said the downgrade of Metrofinanciera's short-term national scale rating reflects the company's still-high exposure to short-term maturities. The impact of the U.S. subprime crisis in Mexico has translated into a higher cost of borrowing as well as into reduced liquidity in the system via more constrained rollovers of commercial paper. Furthermore, Moody's believes that the medium-term access to the domestic and international capital markets will likely be constrained as a result of the uncertainties related to the U.S. economy.

Nevertheless, the agency said it believes the company will be able to meet its short-term debt maturities, albeit at a higher cost to its growth plans and future profitability.

© 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.