-- We revised our outlook on Navistar Financial S.A. de C.V. SOFOM E.N.R.
(NF) as a commercial finance servicer for the Mexican market to stable from
-- We affirmed our STRONG ranking as a commercial finance servicer.
-- The affirmed ranking reflects the information provided by the company
and our site visit performed on Nov. 22, 2012.
-- Our financial position for NF is Sufficient.
MEXICO CITY (Standard & Poor's) Dec. 20, 2012--Standard & Poor's Ratings
Services today revised its outlook on Navistar Financial S.A. de C.V. SOFOM
E.N.R. (NF) to stable from negative as a commercial finance servicer for the
Mexican market. At the same time, we affirmed our STRONG ranking on the
NF has been in the Mexican market for 15 years as a financing provider for,
and a subsidiary of, Navistar International Corp. Inc. a leading producer of
medium and heavy trucks and severe service vehicles.
Our review of the outlook reflects the improvement of the automation level of
its operations particularly for originations and collections and the
standardization of its principal policies and procedures, while maintaining
proficient management, organizational and loan administration capabilities
that correspond with our STRONG servicer ranking.
In our opinion, the projects implemented since our last review in May 2011,
which include the implementation of new IT applications and the reorganization
of the areas that support NF's internal control mechanisms, could continue
contributing to the mitigate the level of operative risk and with it achieve
better efficiency levels for its servicing operations.
KEY RANKING FACTORS
-- Highly experienced management team and professional staff;
-- Well-segregated organizational structure with dedicated personnel for
all critical servicing functions;
-- Comprehensive training program that reflects NFCX's commitment to
improve staff's skills;
-- Robust IT platform that allows the company to perform servicing
operations through a highly automated environment;
-- Adequate mechanisms to monitor and control risks;
-- Appropriate asset administration capabilities that enable the company
to manage adequately a diverse asset portfolio; and
-- Low delinquency levels of its portfolio indicate efficient and
consistent servicing over the past five years.
-- BCP's procedures still lack of communications schemes to achieve
-- Servers' room security conditions could be enhanced to maintain the
same security level in all the facilities of the company; and
-- Non-operative policies and procedures have not been reviewed and
standardized by the recently created process area.
The outlook is now stable. We believe, the initiatives implemented since our
last review will be stabilized in the following 12-18 months allowing the
company to continue strengthen its management, organizational, and loan
administration capabilities as a commercial finance servicer.