Credit Suisse not exposed to Unifin default in Mexico

The Mexican leasing company says it will continue to comply with “payment obligations under non-recourse private securitization structures.”

Credit Suisse is apparently not exposed to the default on its debt announced by the Mexican leasing company Unifin, which confirmed in early June that it had obtained from the bank with the two veils a credit line of half a billion dollars, intended in particular to refinance its debt.

Asked Friday about the advisability and the risk of granting such a loan to an establishment which announced in February a default on a bond of 170 million francs, the management of the bank did not wish to comment.

In a statement to the Mexico Stock Exchange, Unifin said on Tuesday that in view of its “limited access to sources of financing” the payment of principal and interest on its debt was suspended with immediate effect and “for the period necessary to negotiate definitive agreements with its creditors for a strategic restructuring”, and this in an “orderly and consensual” manner.

The Mexican leasing company also previously said it had agreed with the holders of a $200 million international bond to extend a maturity from August 2022 to May 2024, Reuters reported.

Complex financial mechanisms

In the last sentence of its missive to the Mexican stock market policeman, the company clarified that it would continue to comply with “payment obligations under private non-recourse securitization structures”. According to a source close to banking circles, who evokes “very complex financial mechanisms”, the line of credit granted by Credit Suisse corresponds exactly to this scenario.

This is not the case for Crédito Real, another Mexican credit institution in liquidation, whose cumulative debt amounts to more than 2.6 billion dollars. According to a confidential document from the establishment, the number two Swiss bank would be exposed to the tune of 106 million, which places it in second place among “unsecured” creditors, far ahead of other international groups such as BNP (51 million) or Santander (10 million).

In a written statement addressed to AWP, the management of Credit Suisse had then assured not to have “substantial credit commitment with the company mentioned” and that “any assertion to the contrary is without foundation”.

About ten days ago, Credit Suisse saw its credit rating downgraded in quick succession by the rating agencies Moody’s and Standard & Poor’s, which predicted that the number two Swiss bank would face difficult days in the wake of the change in its management team. direction operated after a new calamitous partial.

During an update with investors at the end of June, the director of risk management David Wildermuth praised the progress made by the bank after the debacle of the Archegos and Greensill funds, even if by his own admission there was still “a lot to to do”, in particular to ensure that these efforts are sustained over time.

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