December 23, 2020
S&P Global Ratings dropped Mexico's Compartamos Banco from investment grade after it downgraded the microfinance lender's long-term ratings by one notch to BB+ with a negative outlook.
"Compartamos' loan portfolio has continued deteriorating due to the effects of the COVID-19 pandemic," S&P said in a report on Monday. "Currently, we expect this deterioration to last at least until the end of 2020."
In addition, "extensive" reserve requirements and lower interest earnings will likely eat
Rating agency downgrades the Mexican microfinance lender to BB+ due to the impact of the COVID-19 pandemic