Fitch lowers Metrofinanciera view to negative

Fitch Ratings said it affirmed Metrofinanciera SAPI de CV Sofom, ER's long-term foreign- and local-currency issuer default ratings at B- and short-term issuer default ratings at B.

Fitch also said it affirmed the company’s long- and short-term national scale ratings at B-(mex) and B(mex), respectively.

The outlook on the long-term ratings also was revised to negative from stable.

The outlook revision reflects that the company’s generation capacity posted greater losses in 2016 than in 2015, contrary to expectations, Fitch explained.

The negative outlook also considers the pressure on liquidity that the company faces in 2019, the agency said, if it is not able to successfully implement strategies that mitigate the contingency.

The company’s ratings reflect its still weak asset quality metrics, continued pressure on its loss-absorption capacity due to recurring net losses and the concentration of its funding base, Fitch said.

The ratings also account for its moderate and gradually recovering franchise in the construction loans segment in Mexico, the agency said.

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