S&P affirms Metrofinanciera

Standard & Poor's said it affirmed its B+ long-term counterparty credit rating on Metrofinanciera SA de CV Sofom ENR and affirmed the CCC+ rating on perpetual non-cumulative subordinated step-up securities.

The outlook is negative.

S&P said that the rating affirmation reflects continued pressure on the company's financial performance despite a payment of Ps. 1 billion payment July 5 and its improved core earnings in the second quarter.

The ratings are supported by a business model that generates a large revenue stream, a strategy that aims to shift to a mortgage-oriented portfolio and higher-than-average access to financial markets, S&P said.

The ratings also reflect weak enterprise risk management and aggressive growth strategies, negative pressures on adjusted capitalization, liquidity, leverage and reserve coverage, and an extreme reliance on short-term debt, the agency said.

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