S&P affirms Metrofinanciera

Standard & Poor's said it affirmed its BB- long-term counterparty credit rating on Metrofinanciera SA de CV SOFOM. ENR.

The outlook is stable.

The agency said that the ratings reflect a high level of indebtedness, relatively high individual concentration on bridge loans in Metrofinanciera's loan portfolio, its low coverage of operating expenses with recurring revenues and a low capital base to support the riskier nature of a loan portfolio that is construction- and land loan-oriented.

The ratings on Metrofinanciera are supported by its ability to maintain a high revenue stream, its capacity to raise the coverage of nonperforming assets without significantly affecting its overall profitability and its access to financial markets compared with that of its peers, the agency added.

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