Mexican Mortgage Lender Infonavit #BBB+/A-2# Foreign And A-/A-2 Local Currency Ratings Affirmed, Outlook Remains Stable

Stocks and Financial Services Press Releases Wednesday July 26, 2017 09:06
MEXICO CITY--26 Jul--S&P Global Ratings

MEXICO CITY (S&P Global Ratings) July 25, 2017--S&P Global Ratings affirmed its 'BBB+/A-2' foreign currency and 'A-/A-2' local currency global scale ratings on Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Infonavit). We also affirmed our 'mxAAA/mxA-1+' national scale issuer credit ratings on the entity. The outlook on both scale ratings remains stable.

The ratings on Infonavit reflect its solid business stability as the largest mortgage lender in the country, and its status as the government's financial arm in promoting and developing the housing sector. The ratings also reflect Infonavit's sound capitalization levels, given that our projected RAC ratio will be about 12.8% in 2017 and 2018 thanks to internal capital generation and manageable loan growth rates. Infonavit's asset quality metrics remain higher than those of Mexican mortgage lenders given its low income client orientation; however, its loan loss provisions cover more than 2x its nonperforming assets (NPAS; nonperforming loans [NPLs] and foreclosed assets).

Finally, the ratings incorporate Infonavit's stable long-term funding--which mostly consists of the mandatory contributions from private-sector employees--and its solid liquidity. The ratings incorporate our view that there's an extremely high likelihood that Mexico (foreign currency: BBB+/Stable/A-2; local currency: A/Stable/A-1) would provide extraordinary and timely support to Infonavit in the event of financial distress.

Due to this support, the long-term issuer credit ratings on the entity are one notch higher than its 'bbb' stand-alone credit profile (SACP).

Latest Press Release

Photo Release: Bangkok Bank and Nirvana launch Live Beyond Limits campaign offering a special flat interest rate for one year with a low monthly repayment of 1,000 baht per million baht borrowed

Bangkok Bank Executive Vice President Kelvin Yoong Tao Foo and Nirvana Daii Executive Vice President of Low Rise Residence Group Nantachart Kliebphipat launched the "Live Beyond Limits" promotional campaign offering a special flat interest rate with a...

World Gold Council Launches Responsible Gold Mining Principles

The World Gold Council, the market development organisation for the gold industry, has today announced the launch of its Responsible Gold Mining Principles. The Principles are a framework that set out clear expectations for consumers, investors and the...

Photo Release: EXIM Thailand Visits Frozen Vegetables and Condiments Exporter in Lamphun

Mr. Pisit Serewiwattana (third right), President of Export-Import Bank of Thailand (EXIM Thailand), with EXIM Thailand's executives recently visited Lanna Products Co., Ltd., manufacturer and exporter of frozen vegetables and condiments including instant...

Photo Release: EXIM Thailand and OIE Joins Hands to Promote Thai Entrepreneurs Competitiveness in International Trade and Investment

Mr. Pisit Serewiwattana (right), President of Export-Import Bank of Thailand (EXIM Thailand), and Dr. Nattapol Rangsitpol (left) Director General of Office of Industrial Economics (OIE), Ministry of Industry, and EXIM Thailand's Director signed a...

HReasily Receives US$5 Million Investment from Envy Capital

A SINGAPORE-BASED human resource and benefits management platform, HReasily, made such an impact on its client, that the firm became an investor. Envy Capital invested US$5 million into HReasily, whose human-resource technology is geared for small to...

Related Topics