MEXICO CITY--(BUSINESS WIRE)--Banco Compartamos S.A., Institución de Banca Múltiple (“Compartamos” or “the Company”) (BMV:COMPART) announced today that the ratings agency, Standard & Poor’s (“S&P) affirmed the Bank’s long and short-term local ratings at ‘mxAA’ and ‘mxA-1+’, respectively. In addition, the ratings for local bank bonds were maintained at ‘mxAA’. The outlook is Stable.
The Standard and Poor’s press release stated the following:
“The ratings on Compartamos and bank notes are supported by the bank’s good financial profile, which is supported by its strong capitalization, good profitability and asset quality. On the other hand, the bank continues to strengthen its market share in the microcredit sector in Mexico, supported by an efficient administration and strong corporate governance. The ratings are constrained by its income concentration in a single product and the lack of deposit products that would provide the bank a more pulverized funding base. In addition, an increase in resource transfers as a result of the group’s geographic expansion strategy could pressure the bank's capitalization level.”
Standard and Poor’s concluded, “The stable outlook reflects our expectation that Compartamos will maintain an important pace of market penetration, while maintaining its asset quality supported by its good financial profile and its strong capital base.”
Company Description:
Banco Compartamos S.A., Institución de Banca Múltiple a Mexican bank specialized in microfinance is the largest lender to microbusiness owners in Latin America. Established in 1990 and headquartered in Mexico City, Compartamos provides small loans to low-income Mexican individuals and business owners, such as craft manufacturers, food vendors and other small businesses. The Bank also provides home improvement loans and life insurance products to its clients. With nationwide coverage, Compartamos works with local and international lenders to secure financing to these market segments, which are currently underserved.
Banco Compartamos, S.A., Institución de Banca Múltiple shares began trading on the Mexican Stock Exchange on April 20, 2007 under the ticker symbol “COMPART”. On December 2010, 97.24% of the Bank’s shares were transferred to the new holding structure, Compartamos, S.A.B. de C.V. The Holding’s shares trade on the Mexican Stock Exchange under the ticker “COMPARC”.
Note on Forward-Looking Statements
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.