Fitch ratings unchanged for Metrofinanciera

Fitch's short and long-term credit ratings of C and CCC, respectively, will remain unchanged for Mexican non-bank mortgage and construction lender Metrofinanciera, the company told the local stock exchange BMV. Metrofinanciera outlined plans for debt restructuring which have reduced liabilities and the quantity of debts falling due in the short-medium term after the lender emerged from bankruptcy in June 2010. The unchanged credit ratings also reflect the company's still weak financial profile. Metrofinanciera continued to exhibit losses in 2011, with 45% of total assets still tied up in real estate investments that are only marginally productive and 85% of the company's construction loans due in 3Q11. Indicators suggest that the proportion of productive assets could improve, the release said, and the company hopes to report lower losses in 2012. Fitch considers this objective achievable but challenging, due to the adverse economic situation and weak growth prospects for the real estate sector.