S&P upgrades Banca Mifel on stronger capital position

Standard and Poorꞌs hiked the long-term counter party ratings of Banca Mifel, the Mexico City-based niche bank, on the back of its recent capitalization.

The global scale ratings were increased to ꞌBBꞌ from ꞌBB-ꞌ, while the local ratings were increased to ꞌMXAꞌ from ꞌMXBBB+ꞌ.

The hike reflects an improvement in Mifelꞌs risk adjusted capital (RAC) which rose to 7.5% after the bank received an 800mn-peso (US$46.6mn) injection from private equity firm Advent International, S&P said.

The outlook for all ratings is stable, which means S&P expects Mifelꞌs RAC to remain at 7.5%.

S&P also increased the rating on Mifelꞌs 10-year US$150mn subordinated un-secured bonds to ꞌBꞌ from ꞌB-ꞌ.