MEXICO CITY (Reuters) – S&P Global Ratings will lower its ratings starting point for Mexican non-bank financial institutions (NBFI) to BB-minus from BB, citing financing risks, the ratings agency said on Tuesday.
The agency said non-bank financial institutions were already facing challenging funding conditions, due to their heavy debt burden in the years to come and investor confidence in this sector eroding.
The situation for these institutions became even more difficult after the announcement last week that Mexican leasing firm Unifin would miss principal and interest payments, S&P said.
S&P said its ratings action “reflects our view that the increased funding and economic risks for NBFIs are widening the gap between them and banks operating in Mexico.”
On Monday, Unifin said Chairman Rodrigo Lebois would lead the company’s financial restructuring starting this week.
(Reporting by Kylie Madry; Editing by Leslie Adler and Sam Holmes)
