S&P puts Finca on developing watch

S&P said it placed the BB-/B global scale and mxBBB+/mxA-2 national scale issuer credit ratings on Financiera Finca, SA de CV Sofom ENR (Finca) on CreditWatch developing.

The developing watch listing follows news that Te Creemos Holding, SAPI de CV signed a definitive agreement to acquire Finca, S&P explained.

The agency said it will assess the impact of the acquisition on Finca’s business position.

Finca’s ratings reflect the company’s weak business position based on its focus on the microfinance sector, which is sensitive to economic downturns, S&P said.

This results in fluctuating results as seen during 2014 and 2015, along with strong capital and earnings and moderate risk position, the agency said.

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