S&P to lower ratings start point for Mexican non-bank financial institutions

BY Reuters | CORPORATE | 08/16/22 05:54 PM EDT

MEXICO CITY, Aug 16 (Reuters) - S&P Global Ratings will lower its ratings starting point for Mexican non-bank financial institutions to BB-minus from BB, citing financing risks, the ratings agency said on Tuesday.

The situation for the institutions is becoming "more difficult" after the announcement last week that Mexican leasing firm Unifin would miss principal and interest payments, S&P said. (Reporting by Kylie Madry; Editing by Leslie Adler)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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