Credito Real was downgraded to B- from BB- by Fitch reflecting slower than expected progress in its funding and liquidity plans to meet repayment of its CHF 170mn ($185.7mn) 2.875% 2022s due on February 9. Whilst the company has managed to sell and collect a portion of the Mexican and US SME portfolio worth ~MXN 1.12bn ($54mn), Fitch says that “the origination pace has only reduced partially in recent weeks, while the announced syndicated secured credit line is still pending completion”. Its execution risk is very high regarding previously announced and additional funding strategies to meet the upcoming debt maturity. The company was downgraded earlier this week by S&P to B- from B+ on similar grounds.
Credito Real’s CHF 2.875% 2022s were up 7 points to 93.06.