Banco Multiva Case

S&P affirmed Banco Multiva’s credit ratings on a national long-term scale of ‘MxA’ and short-term of ‘MxA-2’. The outlook is stable. At the same time, the credit agency affirmed their long-term rating on national scale ratings of ‘mxBBB-‘ of its issuance of subordinated debentures, and a rating of ‘mxA’ of stock certificates offered by the bank. The qualified ‘mxA’ debt is more susceptible to adverse effects of changes in circumstances or economic conditions that skilled at senior debt. However, the payment capacity of the obligor to meet its financial commitment on long-term obligations is strong in relation to other issuers in the domestic market. The short-term debt rated at ‘mxA-2’ is slightly more susceptible to adverse changes in circumstances
In addition, HR Ratings revised Banco Multiva’s Credit Risk Rating from “BBB+” to “A-“, with a stable outlook for the issuance of subordinated debentures. A rating of ‘HR A’ means the issuer or offering given this rating offers reasonable certainty for the prompt payment of debt obligations and they maintain a low credit risk under adverse economic scenarios. A rating of ‘HR2’ indicates that the issuer or offering given this rating offers a reasonable ability to make prompt payment on short-term obligations and maintains a higher credit risk compared to instruments with a higher credit rating. A rating of ‘A-’ indicates an adequate rating in terms of credit quality for a fund and carries a credit risk similar to that for instruments with low credit
The balance of the 20 largest debtors common risk represented 7.7X the equity at 1Q15 (2013: 7.2X); Fitch believes this indicator is very high and compares unfavorably with its closest peers. The company also shows a wide coverage indicators of healthy reserves and capital that mitigate these