-- Mexico-based financial institution Consupago has transferred most of its assets and liabilities to its affiliate, Consubanco (BB/Stable/--).
-- The MXN750 million senior unsecured notes that were transferred to Consubanco currently have a 'BB' global scale rating.
-- We are lowering our global scale issuer credit ratings on Consupago to 'B' from 'BB' and national scale issuer credit ratings to 'mxBBB-/mxA-3' from 'mxA/mxA-2'.
-- We are withdrawing the ratings at the issuer's request. Rating Action
On Nov. 20, 2012, Standard & Poor's Ratings Services lowered its global scale issuer credit rating on Consupago S.A. de C.V. S.F.O.L. to 'B' from 'BB', and national scale issuer credit ratings to 'mxBBB-/mxA-3' from 'mxA/mxA-2' after the transfer of most of Consupago's assets to its affiliate, Consubanco, S.A. Institucion de Banca Multiple (global scale BB/Stable/--; national scale mxA/Stable/mxA-2).
This action also affects Consupago's debt ratings. Immediately after, Standard & Poor's withdrew all ratings on Consupago at the issuer's request. The outlook was stable prior to the withdrawal.
The downgrade reflects the transfer's impact on Consupago's business and financial positions. By transferring its entire current portfolio to the bank, in our opinion, Consupago's market position is now weaker, as its loan portfolio is now comprised only of past due loans. Consupago's overall financial performance will decline; however, a very strong capital level might be an offsetting factor.
Standard & Poor's also withdrew the rating on commercial paper, which was under a MXN1 billion program, totaled MXN620 million by the end of September, and was paid in October. We also withdrew the rating on MXN500 million notes, which were not issued. Consupago transferred the 'BB' rated MXN750 million senior unsecured notes, which it issued in 2010, to the bank. Related Criteria And Research
-- Consubanco, S.A. Institucion de Banca Multiple Rated 'BB', Outlook Stable, Nov. 20, 2012
-- Rating Finance Companies, March 18, 2004 Ratings List Ratings Downgraded Consupago, S.A. de C.V. S.F.O.L Issuer Credit Rating To From Global Rating Scale B/Stable/-- BB/Stable/-- Caval
- Mexican Rating Scale mxBBB-/Stable/mxA-3 mxA/Stable/mxA-2 Senior Unsecured Caval
- Mexican Rating Scale mxBBB- mxA Commercial Paper Caval
- Mexican Rating Scale mxA-3 mxA-2 Ratings Subsequently Withdrawn Consupago, S.A. de C.V. S.F.O.L Issuer Credit Rating To From Global Rating Scale NR B/Stable/--
Caval - Mexican Rating Scale NR mxBBB-/Stable/mxA-3 Senior Unsecured Caval
- Mexican Rating Scale NR mxBBB- Commercial Paper Caval - Mexican Rating Scale NR mxA-3