Su Casita Could See Upgrade: S&P

S&P has placed Su Casita on credit watch positive following the news that Spanish Bank Caja Madrid is set to acquire 100% of the Mexican mortgage lender. Su Casita’s 70% compounded average growth over the last six years has put pressure on its capitalization, says S&P analyst Francisco Suarez. “Reducing funding costs is crucial for the overall competitiveness of the entity,” he says. “Any additional capital would be a help.” However, no rating action will be made until the transaction is approved and the two sides communicate the financial and strategic implications of the deal. Su Casita is rated BB, and A on a Mexican national scale.