Fitch upgrades Omni

Fitch Ratings said it upgraded Omni SA Credito, Financiamento e Investimento’s national long-term rating to BBB(bra)from BBB-(bra).

Fitch also affirmed Omni’s other ratings.

The upgrade was driven by improvements to the company’s funding structure, improved capitalization, stronger liquidity and the consistent performance over the challenging operating environment of the past three years, Fitch said.

The ratings also considered Omni’s business model, which is supported by good management information systems and risk controls in a business where significant levels of impairments are expected, the agency said.

The ratings also reflect Omni’s expertise in its main business niche – financing autos for the lower purchasing-power classes, a segment that is less targeted by the competition, Fitch said.

The ratings also take into account Omni’s small size compared with its peers, along with higher leverage and concentration in a market niche more prone to fluctuations in the economy that could impact its borrowers, the agency said.

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