Bangkok--15 Aug--Standard & Poor's
Standard & Poor's Ratings Services believes the overall Mexican economy will continue to be stable, benefiting the underlying mortgage borrowers. However, various factors, including the recent uncertainty in the global economy, could dampen the country's economy and any recovery in residential mortgage-backed securities (RMBS) portfolios, according to Standard & Poor's recently published Mexican RMBS Index.
Despite a mostly positive economy in Mexico during the first half of 2011, the country's RMBS performance continued to decline but saw hints of improvement. RMBS nonperforming levels and foreclosed properties remained on the rise. However, foreclosed property sales also increased, providing necessary additional cash inflows to the trusts, and issuance saw the most growth since 2007.
"During the second half of 2011, we expect the first half of the year's delinquency and nonperforming trends to continue without notable changes. We also anticipate an increase in recovery proceeds and successful foreclosures at the end of long judicial foreclosure processes begun during 2006-2008," said credit analyst Marisol Gonzalez de Cosio. "Performance, in our view, will depend strongly on the macroeconomic scenario, including a possible slowdown of the global economic recovery and the implications of such on the Mexican economy."
At best, we could see a sluggish improvement in the performance of the country's RMBS in the next 12-18 months.
In our Mexican RMBS Index update, we reviewed Mexican housing market performance data from January 2003 to June 2011. The report includes data from 14 credit institutions. For the full report, see "Mexican RMBS Index: Improvement In Mortgage Loan Performance Could Remain Sluggish For The Rest Of 2011 Amid Global Economic Uncertainties," published Aug. 11, 2011.
The reports are available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
Fabienne Alexis, New York (1) 212-438-7530;
[email protected]
Mexican RMBS Analytical Contacts:
Maria del Sol Gonzalez de Cosio, Mexico City (52) 55-5081-4420
Mauricio Tello, Mexico City (52) 55-5081-4446
Daniel Castineyra, Mexico City (52) 55-5081-4497
Analytical Manager, Emerging Markets Structured Finance:
Juan Pablo De Mollein, New York (1) 212-438-2536