Consubanco #BB-# Long-Term Global Scale Ratings Affirmed, Then Withdrawn At Issuer#s Request

Stocks and Financial Services Press Releases Wednesday March 7, 2018 10:14
MEXICO CITY--7 Mar--S&P Global Ratings

MEXICO CITY (S&P Global Ratings) March 6, 2018--S&P Global Ratings affirmed its 'BB-' long-term global scale issuer credit rating on Consubanco, S.A. Institución de Banca Múltiple (Consubanco). We subsequently withdrew it at issuer's request. At the time of the withdrawal, the outlook was stable and we didn't rate any unsecured debt on global scale. National scale ratings remained unchanged at 'mxBBB+/mxA-2'.

At the time of the withdrawal, the global scale rating on Consubanco reflected its successful implementation of its liquidity plan and the resulting reduction in refinancing risk and liquidity pressure. Over the past five months, the bank has been able to get additional funding support from its main shareholder and closed two market debt issuances (one unsecured and the other secured), which have alleviated refinancing and liquidity risks. We believe the latter transaction increased Consubanco's financial flexibility, reducing our concerns about 2018 debt maturities. The bank remains committed to taking additional steps that we expect will provide it with additional liquidity and growth prospects.

The rating on Consubanco also incorporated its revenue stream from only one business line (payroll discount lending services) and its small market share in the Mexican banking system. The bank continued to enjoy a solid capital base that has supported growth and has kept our risk-adjusted capital ratio comfortably above 20%. The operational risk inherent in offering banking services to public-sector entities weakened Consubanco's asset quality metrics during the past few quarters. Rollout of its liquidity plan broadened the bank's funding sources; therefore, increasing financial flexibility.


Latest Press Release

TMB reveals TMB ABSOLUTE the latest credit card targets high-end customers Every Baht 10 spent earns 1 point

TMB reveals "TMB ABSOLUTE" the latest credit card targets high-end customers Every Baht 10 spent earns 1 point, no foreign transaction fees on overseas spending Including travel insurance coverage TMB launches "TMB ABSOLUTE" Visa Signature, a high-end...

Photo Release: TMB debuts new credit card TMB ABSOLUTE targeting high-end customers

Marie Ramlie, (centre) Head of Retail Products, TMB Bank Public Company Limited, together with Jaray Jianthanakanon (3rd from left), Head of Retail Lending Products, TMB, held a grand event to debut the new credit card TMB ABSOLUTE Via Signature. It is a...

Gossip News: Nattaphatt Tanboon-ek, New CFO of WHAUP

WHA Utilities & Power brought in a veteran - Nattaphatt Tanboon-ek as its new CFO. In addition to his vast experience in capital market, Mr. Nattaphatt is also a guru in the energy sector. Once taking the helm, he will immediately drive both the...

Photo Release: KTC joins hands with Family Mart and Lawson 108 in providing Bt. 10 cash backs.

Mr. Nattasit Soontranu, Vice President - Credit Card Business, "KTC" or Krungthai Card Public Company Limited, jointly with Family Mart and Lawson 108, provide members worthwhileness with Bt. 10 cash back E-Coupons by making transactions using KTC credit...

Dusk Network Announces Listing of DUSK Token on Bitfinex, Bittrex International and Ethfinex

- Listings on leading exchanges follow recent $8.1 million raise by Amsterdam based Dusk Network Dusk Network, a cryptographically transparent digital ledger, has announced today that its cryptocurrency, DUSK (ERC-20) token, has been listed on the...

Related Topics