Fitch Publishes Mexican Group Lending Dashboard

June 29, 2015 1:22 PM EDT

MONTERREY, Mexico--(BUSINESS WIRE)-- Fitch Ratings has published a dashboard report for the Mexican Group Lending Sector.

The publication discusses key factors affecting issuer credit profiles in the Group Lending segment. In particular, Fitch observes mixed profitability trends within the sector, where entities with larger business volumes and longer track record exhibit stronger financial profiles. The business model is characterized by wide interest margins; however, Fitch believes potential downward pressure exists as these entities will likely absorb any potential increase in their funding cost under a scenario of rising interest rates.

Capital adequacy metrics remain robust for most entities, and their liquidity is amply benefitted by the short-term nature of the loan portfolio, while impairments remain high and pressured by increased competition and the introduction of new products.

The 'Mexican Group Lenders - 1Q15 Dashboard' is available on Fitch's website at 'www.fitchratings.com'.

Additional information is available on www.fitchratings.com

Mexican Group Lending -- 1Q15 Dashboard

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867365

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Fitch Ratings
Veronica Chau
Director
+52 8399 9169
Fitch Mexico S.A. de C.V.
Prol. Alfonso Reyes 2612, Monterrey, N.L., Mexico
or
Alba Maria Zavala
Associate Director
+52 8399 9137
or
Media Relations:
Alyssa Castelli, +1 212-908-0540
[email protected]

Source: Fitch Ratings



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