Ratings roundup: Financiera Bepensa, Credit Suisse unit, Banobras

- Wednesday, November 16, 2011

Ratings roundup: Financiera Bepensa, Credit Suisse unit, Banobras

Moody's has assigned a long-term rating of A3(mex) and a short-term rating of MX-2 to Mexican vehicle and machinery loan company Financiera Bepensa, the ratings agency said in a press release.

Although Bepensa benefits from providing financial products to affiliate companies and also to their suppliers and customers, this results in a high level of dependence which limits the company's growth potential and franchise value, according to the release.

The release also said that the ratings were based on Bepensa's poorly diversified funding structure and weak liquidity profile.

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The rating is partially balanced by strong synergies within Bepensa group which have previously supported its expansion.

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Moody's will review the A2 long-term global local currency (GLC) rating of Credit Suisse Mexico for possible downgrade.

The brokerage operations of Credit Suisse Mexico are also under review for possible downgrade, Moody's said in a press release.

The ratings actions on Credit Suisse Mexico and CB Credit Suisse follow Moody's decision to place on review for downgrade the long-term ratings of Credit Suisse (NYSE: CS).

The Mexican national scale ratings of these entities are not under review, Moody's noted.

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Fitch has given a rating of AAA(mex) to Mexican public works and services development bank Banobras for bond issues worth a combined total of 7bn pesos (US$515mn), according to a press release.

The move is in line with Moody's recent rating of AAA(mex) for Banobras bond issues.

The government of Mexico is the majority shareholder in Banobras. Given Mexico's sovereign rating, there is a high probability that Banobras would receive government support for bond repayments if necessary, according to the release.