Fitch lifts Metrofinanciera

Fitch Ratings said it upgraded Metrofinanciera, SAPI de CV Sofom ENR's foreign- and local-currency long-term issuer default ratings to B- from CCC and short-term issuer default rating to B from C.

The agency also said it upgraded Metrofinanciera's long-term national scale rating to B-(mex) from CCC (mex), along with its short-term national scale rating to B(mex) from C(mex).

The upgrades are driven by the positive trends in performance and cash flow generation, which drove the faster-than-expected recovery in its financial results as it posted fewer losses than anticipated in 2015, Fitch said.

The agency said the company expects to reach its break-even point and register moderate profits toward the end of 2016.

The upgrades also consider the company's proven ability to grow its commercial loan portfolio and gradually rebuild its competitive position, Fitch said.

The ratings also reflect its improved capitalization metrics and financial flexibility following the debt-restructuring process that took place at the end of 2014, the agency said.

© 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.