DBRS upgrades Grupo Cooperativo Cajamar’s long-term issuer rating to BBB

DBRS Morningstar has raised the long-term issuer ratings of Banco de Crédito Social Cooperativo (BCC), Cajamar, and Grupo Cooperativo Cajamar to BBB, from BBB (low). It has also upgraded the Group's short-term rating to R-2 (high) from R-2 (middle) and the long-term subordinated debt rating has been improved from BB to BB (high), reaffirming the positive outlook for all ratings.

The rating agency states that this upgrade “reflect the significant progress the Group’s has made in de-risking its balance sheet”, as well as the Group's strategy of improving the composition of its portfolio mix by focusing on larger corporates. In addition, DBRS Morningstar highlights that “the Group’s enhanced profitability since Q1 2024”. A trend that it considers positive, as it states that Grupo Cajamar “is adequately positioned to largely sustain this enhancement in profitability over the long term on the back of a supportive interest rate environment, credit growth, contained operating costs, and a moderate cost of risk underpinned by a solid domestic economy”.

DBRS Morningstar also values its ample capital buffers, which are above minimum requirements, and its solid funding and liquidity profile, with a large and growing customer deposit base, supported by its credit union status.

This credit rating upgrade follows the one issued last March by Fitch Ratings, which upgraded the long-term rating to BBB with a stable outlook. Grupo Cajamar is currently rated at investment grade by all three rating agencies -Fitch Ratings, S&P, and DBRS Morningstar-.