Ucecsa loses Moody's speculative grade ratings but gets BB+ from HR

Thursday, September 15, 2011

Moody's has withdrawn for business reasons the subprime ratings of Mexican credit union Unión de Crédito Empresarial de Cuauhtémoc (Ucecsa).

Prior to the withdrawal, the ratings agency rated Ucecsa's financial strength at E (very modest) and long-term local and foreign currency deposit ratings at Caa3.

Local ratings agency HR Ratings, however, has rated Ucecsa's long-term credit strength at BB+, with a stable outlook.

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HR singled out the credit union's low loan delinquency and good historic management of its credit portfolio.

Ucecsa is based in the northern Mexican state of Chihuahua. At the end of 2010, it had US$12.6mn in assets and made US$170,000 in profits that year.