MUMBAI (Thomson Financial) - Moody's Investors Service changed its outlook
on Popular Inc and its units to stable from negative, after the company agreed
to sell a significant portion of the mortgage and consumer loan portfolio of its
direct US consumer finance business, known as Equity One, to American General
Finance for about 1.5 bln usd.
The holding company is rated 'A3' for senior debt and the lead bank, Banco
Popular de Puerto Rico, is rated 'C+' for bank financial strength and 'A2' for
deposits.
According to Moody's, the transaction will reduce Popular's exposure to US
subprime mortgages and significantly strengthen its holding company liquidity
position since Popular has largely financed its US consumer finance business
with short- and medium-term wholesale borrowings at the parent company level.
TFN.newsdesk@thomson.com
jro
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