Mexican non-bank lender Credito Real’s non-performing loans increased due to a single poorly performing loan, and does not represent a wider systematic issue, according to Credito Real CEO Carlos Ochoa. Ochoa reassured that the non-banker lender does not suffer from liquidity issues nor is it a risk of refinancing. As Credito Real collects guarantees, non-performing loan ratios should fall from 3.9% to 3% by the end of 2021. Ochoa disclosed the company’s consciousness over the high NPL ratio, which almost reached the thresholds of some loan covenants. Ochoa added that the company has been transparent about the more than $30mn loan that it made from its small and medium sized business portfolio, which was required to be classified as delinquent in a filing on Saturday. Credito Real declined to comment on how many other large loans were made. Ochoa reported that debt will not be increased this year, but that the company’s loan book could increase by 7-8%. Credit Real aims to focus on improving transparency and corporate governance.

Credito Real´s USD bonds recovered most of the prior days’ losses with its 7.25% 2023s up 1.31 to 98.063, yielding 8.22% and its 9.5% 2026s up 1.25 to 97.125.

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