S&P Clips Su Casita

S&P has lowered the credit rating of Mexican mortgage lender Su Casita to BB- from BB, and its national scale mark to A minus from A. “The downgrade reflects the continuing deterioration in Su Casita’s asset quality, negative pressures on its profitability and low levels of capitalization,” the agency says. Particularly troublesome is the rate of non-performing assets in the lender’s portfolio, which S&P estimates final 2008 results will show to be more than the 5.4% seen in September. Despite the recent MXP500m raised from existing shareholders, S&P still finds Su Casita’s Capitalization to be low. The outlook is stable.