BRC S&P Affirms Rating and Outlook of Credivalores

BOGOTA, Colombia, April 28, 2016 /PRNewswire/ -- Credivalores-Crediservicios SAS, a leading non-bank financial company focused on origination of consumer loans with innovative collection channels for the low and middle-income segments of the population that are underserved by the Colombian financial system, announced that BRC Standard and Poor's, on its periodic review, confirmed Credivalores' "ori AA-" rating as loan originator and kept the outlook as positive.

The positive outlook assigned by the agency is consistent, among others, with its improvements in the loan origination processes, strengthening of the company's management team and the gradual upgrading of its technology standards and risk management.

BRC Standard and Poor's noted that Credivalores, despite focusing on a clients with a higher risk profile, has been able to maintain portfolio quality ratios which compare favorably to those of the banking sector. Additionally, during the past year, the company significantly increased its coverage of nonperforming loans. According to the rating agency, the company's main challenge for 2016 and 2017 will be to maintain these ratios in an adverse economic environment.

In addition, it is highlighted that the origination strategy and loan subscription policies are a company's strength and that there are several factors that may favor the performance of Credivalores' portfolio, including that 57% of the portfolio is comprised of payroll deduction loans and that 28% of total portfolio is comprised of payroll loans to pensioners.

The rating agency also emphasized that improvements in risk management over the past year are taken into consideration for maintaining the rating's positive outlook.

BRC Standard and Poor's noted that Credivalores doesn't have access to a lender of last resort, unlike other credit institutions. This weakness is offset, in part, through access to committed credit lines and issuances of notes in the international capital market.

For more information, visit our investor relations www.credivalores.com.co

About Credivalores: Credivalores is a leading Colombian non-bank financial company that offers consumer lending products like payroll deduction loans and credit cards collected through public utilities to low and middle income segments of the population underserved by the financial system. The company manages a loan portfolio of over COP$1.1 billion (US$360 million) and is currently rated B+/ B by Standard and Poor's.

SOURCE Credivalores

Related Links

http://www.credivalores.com.co