S&P raises the long-term rating of Cajamar and Banco de Crédito Social Cooperativo to BB+ with stable outlook

The agency anticipates that Grupo Cooperativo Cajamar will continue to improve its earning capacity, profitability and efficiency, while preserving its asset quality.

The rating agency S&P has raised the long-term rating of Banco de Crédito Social Cooperativo (BCC) and Cajamar to BB+ with  stable outlook and maintains the short-term rating at B. S&P expects that, throughout this year and the next, Grupo Cooperativo Cajamar will continue to improve its earnings capacity, profitability and efficiency, and preserving its asset quality; which will allow it to position itself at the level of the best qualified comparable entities.

The agency points out that the entities of the Cajamar Cooperative Group have improved the quality of the new loans, which are concentrated in their traditional sectors, such as the agri-food sector, small and medium-sized companies and professionals, which represent 47% of the loan portfolio at the end of March 2023.

Likewise, the agency highlights the low delinquency rate of new loans, which is around 1.6% for those granted since 2018, and predicts that “non-performing assets will remain below 5% of gross credit investment by 2024.”

In short, S&P anticipates that the Cajamar cooperative bank will continue to improve its operating profitability and efficiency in the next 12 to 18 months, maintaining its asset quality.