Fitch Ratings Assigns Ratings to Uruguay's COFAC and CACDU.Business Editors Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. international ratings to Uruguayan credit cooperatives COFAC COFAC Cooperativa Nacional de Ahorro y Credito (Spanish) and CACDU for the first time following the central bank mandate requiring all Uruguayan financial institutions to obtain international and national ratings. The ratings are as follows: COFAC -- Cooperativa Nacional de Ahorro y Credito --Long-term Foreign Currency Rating, 'B-'; --Support Rating, '5T'; --Rating Outlook is Negative. CACDU -- Primera Cooperativa de Ahorro y Credito de Paysandu --Long-term Foreign Currency Rating, 'B-'; --Support Rating, '5T'; --Rating Outlook is Negative. COFAC's ratings reflect its position in the system as the largest cooperative in Uruguay, but also factor its weak capital position and liquidity. COFAC, founded in 1987, offers banking services to the medium to low income consumer segment, as well as the commercial sector through a network of 37 branches. COFAC held assets of US$359.5 million at end-2001 and is currently in the process of acquiring assets of smaller cooperatives. COFAC ranked 15th largest in terms of deposits at end-September 2001. CACDU's ratings reflect the cooperative's adequate profitability and capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. , but also reflect its small size and relatively insignificant position in the Uruguayan financial system. Founded in 1976, CACDU is a credit cooperative that serves consumers and small to medium sized businesses in the region of Paysandu. CACDU reported total assets of US$28.8 million at end-2001 and occupied the 30th position in the system in terms of deposits at end-September 2001. The cooperative intends to merge with COFAC, which would improve its position within the financial system. The negative outlook on the long-term ratings of COFAC and CACDU reflect the adverse operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. for financial institutions in Uruguay, which has been characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by an ongoing economic recession and the strong outflow of banking system deposits triggered by Argentina's bank deposit restrictions and devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. . |
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