Fixed Income Analysis /

FINANCIERA INDEPENDENCIA: Yield attractive, but downgrade to HOLD on Q1 18 results and uncertainties in Mexico and Brazil

    Rafael Elias
    Rafael Elias

    Director, Latin America Credit

    Tellimer Research
    25 April 2018
    Published byTellimer Research
    Soft Q1 18 results, coupled with what we perceive are challenges ahead for Financiera Independencia (FINDEP) regarding its loan mix and profitability, lead us to downgrade our recommendation on FINDEP bonds to HOLD (from BUY). We believe that bond prices are currently trading at fair value, with limited upside until the company returns to its potential growth levels.