S&P lifts Credito Real view to stable

S&P said it revised the outlook on Credito Real SA de CV Sofom to stable from negative.

The agency also said it affirmed the BB+ global-scale and mxA+/mxA-1 national-scale issuer credit ratings.

The agency also affirmed the BB+ rating on the company's senior unsecured notes.

The ratings on Credito Real's senior unsecured debt consider that as of Dec. 31, 2016, secured debt represented less than 15% of adjusted assets, S&P said, and unencumbered assets completely covered unsecured debt.

Consequently, the agency said it doesn't apply notches of subordination to this issuance.

The outlook revision reflects Credito Real's less-aggressive credit growth rate and good internal capital generation, S&P said.

These factors have eased pressures on the RAC ratio, which is now forecast to be about 12% in the next two years, the agency said.

The outlook revision also reflects the company's lower risk appetite and an expectation that it will maintain its more prudent market risk management, S&P added.

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