:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/elfinanciero/JY6KXZTNIRA3ZN7FCD77EMPE5I.jpeg "Real Credit stocks plummet 28.7% after defaulting on Swiss bond – El Financiero")
The financial institution Real Credit he announced the non-payment of a bond for 170 million Swiss francs, which was due on Wednesday.
Through a statement sent to the Mexican Stock Exchange (BMV), the firm gave an update on their situation.
“Considering the expiration date of this bond, this results in a default. Crédito Real has hired DLA Piper LLP (EU) as legal advisor and FTI Consulting as restructuring advisor”, you can read in the document.
Derived from this situation, company shares plummeted 28.7 percent in one day, because at the close of Tuesday each paper was quoted at 3.36 pesos, while Wednesday closed the session at 2.36 pesos per title.
In one week, the firm’s shares have fallen just over 55 percent, since at the beginning of February each security was traded in more than 5.2 pesos.
Last week, two of the two major rating agencies reduced the Actual Credit score due to high default risk they envisioned.
S & P went down to CCC-Real Credit ratings, from B -, while Fitch Ratings he also downgraded the signature note, which went from BB-to B -.
” Additional negative rating actions could be taken in the following days in case additional financing alternatives are not guaranteed, which could increase the possibility of a short-term default, ” Fitch abounded.
Crédito real describes itself on its website as”a company with over 25 years of experience, 100 percent Mexican.”
“We offer innovative financial solutions to segments underserved by the traditional banking system. Our priority is to help raise the quality of life of our customers through specialized financial solutions, ” he says.
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