DBRS upgrades credit rating of Grupo Cooperativo Cajamar, Cajamar, and Banco de Crédito Social Cooperativo to BBB (low) with stable outlook

The agency notes that the upgrade reflects the enhanced quality of the Group’s assets and its strong capital position. DBRS expects that solid third-quarter interest income, combined with an improved risk profile, will boost the Group’s profitability. 

DBRS Morningstar has raised the long-term credit ratings of Grupo Cooperativo Cajamar, Cajamar Caja Rural, and Banco de Crédito Social Cooperativo to BBB (low), with a stable outlook. Short-term issue ratings are also upgraded to R-2 (middle) with a stable outlook.  

DBRS Morningstar attributes the upgrade to Grupo Cooperativo Cajamar's solid capital performance and to the gradual reduction of non-performing assets in recent years, which has led to significant enhancement of asset quality, contributing to a balanced financial position.  

Despite the current challenging economic environment, DBRS also notes the favourable risk profile of the Group, anticipating increased profitability in the coming quarters, driven by robust third-quarter interest income and improved risk costs.  

The upgrade also reflects DBRS's positive view of the Group's capital position and financial business, highlighting its stable deposit base and specialisation in the agri-food sector. It also emphasises the Group's substantial 15% market share in lending to the primary sector. 

DBRS Morningstar underscores that Grupo Cajamar's funding and liquidity position is backed by the strong and stable customer deposit base generated by its cooperative business model.