Printer Friendly

NACIONAL FINANCIERA, S.N.C. DOLLAR AND PESO OBLIGATIONS RATED EQUAL TO RATINGS OF MEXICO BY DUFF & PHELPS

 CHICAGO, Sept. 7 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings to the dollar and peso-denominated obligations of Nacional Financiera, S.N.C. that are equal to the ratings Duff & Phelps has assigned to the obligations of the United Mexican States. In May 1993, Duff & Phelps issued an investment grade rating for Mexico's dollar-denominated obligations maturing before 2000. Nacional Financiera, S.N.C. (NAFIN) is a Mexican development bank and national credit institution.
 Duff & Phelps ratings for the dollar denominated obligations of NAFIN incorporate a term-to-maturity factor based on the Mexican sovereign ratings associated with each time horizon. This sovereign rating acts as a ceiling on individual issuer ratings. Long-term dollar obligations maturing beyond one year but before Dec. 31, 1996, are rated `BBB' (triple B). Dollar obligations maturing between Jan. 1, 1997, and Dec. 31, 1999, are rated `BBB-' (triple B minus). Dollar obligations maturing after Dec. 31, 1999, are rated `BB+' (double B plus). The short-term (maturing under one year) dollar denominated rating for NAFIN is Duff 2.
 For peso-denominated issues, Duff & Phelps assigned ratings of `AA+' (double A plus) for long-term obligations and Duff 1+ (one plus) to the short-term peso-denominated obligations of Nacional Financiera, S.N.C. This is Duff & Phelps' highest short-term rating.
 These ratings reflect NAFIN's status as a national development bank for Mexico for which the United Mexican States provides full faith and credit backing for all authorized debt obligations. An additional factor in our ratings is the solid financial condition and improved operating performance of NAFIN. Earnings have increased significantly over recent years as NAFIN has refocused its lending activities and discontinued certain retail and governmental financing lines of business. Net income equaled 695 million new pesos in 1992 which equaled a return on assets of approximately 1.10 percent. However, earnings over recent years have included substantial revenues from equity securities transactions, a volatile earnings source. The balance sheet is strong with solid asset quality and a large capital base. Asset quality measures are very good and reflect, in part, NAFIN's historical position as a governmental financing vehicle which has resulted in a large portion (70 percent) of NAFIN's loan portfolio being guaranteed by the government.
 The balance sheet is also characterized by a large capital base. Stockholders' equity equaled 6.85 percent of total assets at Dec. 31, 1992.
 Nacional Financiera, S.N.C., established in 1934, is controlled by the Federal Government of Mexico and is one of the government's principal vehicles for promoting and financing the economic development of Mexico. In August 1989, NAFIN restructured its operations, discontinuing the acceptance of retail deposits, scaling back its public finance activities, and transferring its interests in certain commercial banks to the federal government. Since then, NAFIN's focus has been on stimulating the growth of small- and medium-sized businesses in the private sector by enhancing access to financing and providing them with managerial training, technology and technical assistance.
 -0- 9/7/93
 /CONTACT: Charles J. Orabutt, Jr., 312-368-3153, or David L. Roberts, Ph.D., 212-908-0221, both of Duff & Phelps Credit Rating Co./


CO: Nacional Financiera, S.N.C. ST: IN: FIN SU: RTG

PS -- NY042 -- 9314 09/07/93 12:01 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 7, 1993
Words:532
Previous Article:ASTRA C.A.P.S.A. AND ITS ANTARES NAVIERA UNIT RECEIVE APPROVAL OF SHIPPING BIDS
Next Article:AMEX TO TRADE NEW OPTIONS SEPT. 10 ON CALIFORNIA MICROWAVE AND INTELCOM GROUP
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters