Metrofinanciera Ratings Trashed

Fitch has downgraded Metrofinanciera to RD from C following the recent announcement that it has defaulted on a coupon payments on local short-term debt. The company is maintaining discussions with creditors on a restructuring plan. Fitch considers that continued and extended support from Mexican development bank SHF is essential to successfully completing a sustainable restructuring. If the company is unable to agree a work out and, in Fitch’s opinion, it is forced to cease business – by entering into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedures – the company’s IDRs would be downgraded to D, the agency says. Metro’s national-scale ratings were in turn downgraded to D (mex) from C (mex). Fitch has also removed the IDRs and national-scale ratings from watch negative.