MICROCAPITAL BRIEF: Fitch Improves Outlook to Positive for Grupo ACP, Owner of Mibanco of Peru and Forjadores of Mexico

Fitch, a rating agency with headquarters in London and New York, reportedly has affirmed the rating of Peruvian nonprofit holding company Grupo ACP Inversiones y Desarrollo (Grupo ACP) at BB-, indicating an elevated vulnerability to default risk. It also improved the firm’s outlook from stable to positive due to “the company’s sustained performance, sound growth prospects for its core subsidiaries, and the expected stabilization of Grupo ACP ACP’s leverage underpinned by higher expected profits.” Fitch identified Grupo ACP’s increased leverage, lower profitability and sustained competition as negative factors in its assessment. Grupo ACP reported lower profits in 2011 due to higher funding costs and operating expenses, while increased funding in international markets raised its leverage [1] [2].

For the year 2010, Grupo ACP reported total assets of PEN 4.67 billion (USD 1.75 billion). Grupo ACP owns majority stakes in 23 companies that provide financial services including microfinance, housing, infrastructure and microinsurance in ten Latin American countries: Argentina, Bolivia, Brazil, Ecuador, El Salvador, Guatemala, Mexico, Paraguay, Peru and Uruguay. Its companies include Mibanco, a microfinance institution (MFI) based in Peru, and Forjadores de Negocios, an MFI based in Mexico.

By Brendan Millan, Research Associate

About Grupo ACP Inversiones y Desarrollo (Grupo ACP): Established in 1969 as Accion Comunitaria del Peru (ACP), Grupo ACP is a Peruvian nonprofit holding company focusing on social inclusion for low-income households. Grupo ACP owns majority stakes in 23 companies that provide financial services including microfinance, housing, infrastructure and microinsurance in ten Latin American countries: Argentina, Bolivia, Brazil, Ecuador, El Salvador, Guatemala, Mexico, Paraguay, Peru and Uruguay. Its companies include Mibanco, a microfinance institution (MFI) based in Peru, and Forjadores de Negocios, an MFI based in Mexico. For the year 2010, Grupo ACP reported total assets of PEN 4.67 billion (USD 1.75 billion).

Sources and Resources:

[1] Reuters: “Fitch Revises Grupo ACP Inversiones Outlook”, http://www.reuters.com/article/2012/03/14/idUSWNA248420120314

[2] Fitch: “International Issuer and Credit Rating Scales”, http://www.fitchratings.com/creditdesk/public/ratings_defintions/index.cfm?rd_file=ltr

MicroCapital.org Article, April 5, 2011, “ Peruvian Microfinance Institution (MFI) Mibanco Seeks $60m Syndicated Loan from International Finance Corporation (IFC), Grupo ACP Issues $85m in Bonds”, https://www.microcapital.org/microcapital-brief-peruvian-microfinance-institution-mfi-mibanco-seeks-60m-syndicated-loan-from-international-finance-corporation-ifc-grupo-acp-issues-85m-in-bonds/

MicroCapital.org Article, March 16, 2009, “International Finance Corporation (IFC) Acquires 16.5% Stake in Peruvian Microinsurer Protecta”, https://www.microcapital.org/microcapital-story-international-finance-corporation-ifc-acquires-165-stake-in-peruvian-microinsurer-protecta/

MicroCapital Universe Profile: Grupo ACP Inversiones y Desarrollo (Grupo ACP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grupo+ACP+Inversiones+y+Desarrollo+%28Grupo+ACP%29

MicroCapital Universe Profile: Banco de la Microempresa (Mibanco), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mibanco

MicroCapital Universe Profile: Forjadores de Negocios, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Forjadores+de+Negocios

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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