Bepensa Capital would be mitigating the risk after the purchase of Crédito Real USA: Fitch Ratings

2023-06-27 12:17:08

Mexico City — Bepensa Capital – the financial arm of the Grupo Bepensa conglomerate – is mitigating the risk of its business in the US after the purchase of Crédito Real, a non-bank financial institution in liquidation, according to the rating agency Fitch Ratings.

Fitch reaffirmed in a note the international issuer risk rating at BBB-, the last step within the investment grade, with a stable outlook, two months after completing the purchase of the specialized automotive credit business.

“Bepensa Capital is implementing strategies for the integration of this operation.”

According to Fitch, execution risks are mitigated given Bepensa Capital’s successful track record with past acquisitions.

The transaction, valued at US$60.5 million in total, considered the purchase of a 97.64% interest in Crédito Real USA, focused on providing financing for the purchase of used cars. As of the fourth quarter of 2021, it had a total portfolio of MXN$4,683.2 million.

Other recent operations carried out by Bepensa Capital, to which Fitch Ratings referred, was the purchase of the lessor ABC Leasing on March 18, 2020, at the beginning of the Covid-19 pandemic in Mexico.

Fitch’s rating is based on the ability of parent Grupo Bepensa, known mainly for its bottling business, and its propensity to provide support, if necessary, the rating agency said.

Fitch is also considering the relevance that the financial business is having for the conglomerate, “its good financial performance and long track record of supporting the group’s market expansion and diversification objectives.”

Crédito Real completed the sale of its business in the United States, a move that will allow it to finance the agreement it is negotiating with bondholders.

The operation was announced in January and went through a process to receive the approval of a judge of the Bankruptcy Court in Delaware, where since last year the way in which Crédito Real will meet its obligations to a group of note holders.