Roundup: American Express, Banco Hipotecario bonds, Factorline

- Friday, September 23, 2011

Roundup: American Express, Banco Hipotecario bonds, Factorline

S&P has hiked the national scale long-term rating of the Mexican banking unit of American Express (NYSE: AXP) to AA from AA- and affirmed the lender's short-term rating at A-1+. The outlook is stable, the agency said in a report.

The upgrade reflects American Express Bank México's sustained improvements in asset quality and profitability, as well as its adequate risk adjusted capital (RAC) level and support provided by its parent company.

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

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S&P has assigned a AA national scale long-term rating to Argentine lender Banco Hipotecario's up to 80mn-peso (US$19.2mn) 18-month bonds, extendable to 120mn pesos.

The ratings are based on Banco Hipotecario's good financial position, which is reflected in its high levels of capitalization and adequate liquidity, S&P said in a report.

Proceeds from the issue will be used for working capital, investments in physical assets, refinancing liabilities or to capitalize its subsidiaries.

Hipotecario ranks 13th in terms of assets and fifth in terms of shareholders' equity in Argentina's financial system.

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

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Chilean ratings agency Humphreys has maintained the long and short-term ratings of the country's largest non-bank factoring company, Factorline , at A and at level 1. The outlook is stable, the agency said in a report.

The rating action reflects Factorline's atomization of its loan and commercial exposure, its flexibility to rapidly adapt to market conditions and establishment of clear management goals, Humphreys said.

Humphreys also took into consideration the company's improved internal controls, management of defaulted loans and financial risk management.

Factorline was founded in 1998 and had US$683mn in assets as of end-June.

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