Mega Announces Change In Credit Rating by Moody’s

Guadalajara, Jalisco, Mexico, January 30, 2023. – Operadora de Servicios Mega, S.A. de C.V., SOFOM E.R. (“Mega” or the “Company”), a leading leasing and lending company in Mexico and the United States, announces that Moody’s downgraded its senior unsecured debt rating to ‘BBB+.mx’ from ‘A- .mx’ on the long-term national scale and maintains a negative outlook.

The rating agency indicated that the ratings action taken towards the Company reflects the challenging conditions within the non-bank financial institution (NBFI) sector in Mexico.

Moody’s mentioned that Mega’s new rating is supported by the high quality of its assets and prudent credit placement policies, supporting collections. Likewise, the rating agency views favorably that Mega is a regulated entity and complies with National Banking and Securities Commission (CNBV) standards. Additionally, Moody’s mentioned that Mega maintains adequate reserve levels, as well as capital for expected and unexpected losses.

MEGA reiterates that it maintains continued access to capital markets for financing, which will allow it to continue its growth plans, providing specialized financial solutions to SMEs. Additionally, in order to mitigate the impact of funding in the industry, MEGA continues to reduce the refinancing risk of its Senior Notes maturing in 2025, as reflected in the recent partial bond tender offer and repurchases in the market, allowing it to improve its maturity profile and the cost and mix of its debt.