Ratings roundup: Su Casita, Banco JBS, Inter Banco

Thursday, June 30, 2011

S&P has upgraded Mexican non-bank mortgage and construction lender Hipotecaria Su Casita's global scale counterparty credit ratings to CCC from D after the lender convinced 99% of debt holders to accept an offer to swap dollar-denominated bonds and local currency debt for shares and assets.

Su Casita will proceed with exchanging 94.9% of its US$138mn bonds for US$59mn in assets and 11.6% of company shares.

"We still think that the company faces significant challenges both in terms of asset quality and revenue generation," analysts Arturo Sánchez and Claudia Sánchez wrote in a report.

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The company was dragged down by the global crisis and Mexico's recession in 2008-09. The company had to extend the deadline for the swap offer twice to convince enough investors to keep it afloat.

To read the full report, in Spanish, go to this link


S&P has given Brazilian bank Banco JBS long and short-term counterparty credit ratings of BBB and A-3, respectively, on a national scale. The outlook is stable, the agency said in a report.

The bank benefits from its expertise and know-how in its target market - agriculture financing - leveraging its relevant market positioning amid the main players in this segment, the report reads.

The bank's main challenges are diversifying its business, as well as improving its levels of efficiency, profitability and funding profile, S&P said.

To read the full report, in Portuguese, go to this link


Fitch has assigned A- and F2 national scale counterparty credit ratings, as well as a stable outlook, to Mexican bank Inter Banco.

The ratings are based on support from its parent company, local holding Grupo Intercam and brokerage Intercam Casa de Bolsa. Fitch said Inter Banco has a strong strategic value for its main shareholders, as they have strengthened the bank's business lines amid an increasingly competitive environment and have also undertaken a business diversification from Inter Banco's core focus of forex trading.

To read the full report, in Spanish, go to this link