HR Ratings ratified its “AAA” rating with a stable outlook for the development bank of the housing sectorFederal Mortgage Society (SHF), especially due to the support of the federal government for its passive operations.
In addition, it was pointed out that the bank’s financial situation shows “solid solvency levels” during the first quarter of this year.
“The improvement in solvency is due to the strengthening of stockholders’ equity due to the generation of net profits and the lower amount of average productive assets, due to a low rate of loan placement,” the rating agency detailed in a document sent to the investing public.
For the first three months of the year, the adjusted delinquency rate of the banking entity was 9.1%, against 14.0 -14.9% for the same period in 2021. The rating agency considered that the reduction responds to the adoption of IFRS9 accounting standards.
Regarding the capitalization of Mortgage CompanyHR Ratings explained that a level of 22.6% was reached, against the 19.4% registered in the first quarter of 2021.
“The improvement in the indicator lies in the generation of net profits and the improvement in the valuation of hedging instruments, as well as the reduction in the balance of the credit portfolio, due to a greater recovery with respect to origination and due to the maturity of the existing portfolio”, was detailed in the document.
For the rating agency, the performance of HR Ratings there is a context of support from the federal government, in accordance with the provisions of the organic SHFbut other factors are added to this, such as the diversification of its funding, its policies with an environmental and social focus, as well as a conservative risk policy.
“The Bank has various funding sources that allow it to have sufficient liquidity to fund its operations. Among these tools, the loans from international organizations and the debt issues that they have in force stand out,” he explained. HR Ratings in your report.
“It has derivative instruments for hedging purposes that allow it to mitigate exchange and rate risks; likewise, it maintains a relatively smaller balance in derivative instruments (swaps) for trading purposes, which have the objective of improving funding costs”.
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