S&P cuts Operadora de Servicios Mega

S&P said it removed its one-notch comparable rating adjustment on Operadora de Servicios Mega SA de CV Sofom ER (GFMEGA)’s stand-alone credit profile, triggering a downgrade of the lender to B from B+ on the global scale and to mxBB+/mxB from mxBBB/mxA-2 on the national scale.

The outlook on both the global and national scale ratings is negative.

“Increasingly tight financing conditions are weighing on GFMEGA's funding costs, while interest income is declining despite its larger loan portfolio. Consequently, the company's net interest margins (NIMs) are shrinking, and profitability is weakening more than its peers,” S&P said in a news release.

© 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.