Mexico, April 19, 2011 -- Moody's de México S.A. de C.V. (Moody's)
completed the annual formal re-assessment of six independent collection
agencies that provide collection services for the Instituto del Fondo
Nacional de la Vivienda para los Trabajadores (Infonavit). The
collection agencies assessed manage loan pools originated by Infonavit.
The loan pools that Infonavit assigns to these collection agencies are
exclusively social interest mortgage loans with 30, 60 and 90 days
Moody's assessment focused on each agency's roll over rates, on
the call center and door-knocking performance metrics, on
their ability to have in place reliable collection processes as well as
on the vendors' capacities to improve their collections platform.
Compared to the last review, customer service levels tended to improve
given that at least 80% of the collection agents are already certified
in collection abilities. In Moody's opinion the vendors still
have an opportunity area in lowering abandonment rates and improving average
speed of answer in their respective call centers. Both issues would
contribute to enhance customer satisfaction levels.
Also compared to the last review, collection contact rates have
improved and the rate of promises kept has been higher. Moody's
believes this is a result of collections strategies that combined call
center and field collection campaigns. Moody's positively
views the increased independence of call centers in order to implement
their own collection strategies as well as the fact that they are evaluated
according to the results of such strategies. Moody's positively
views the use of GPS technology for the monitoring of field agents.
However, it is important to keep close on-site monitoring
of the call center and field agents. Similarly, Moody's would
positively view a more comprehensive portfolio analysis and collection
strategy preparation before the vendors assign the loans to the call center
or field collections teams.
Over the past year the vendors continued strengthening their information
technology platforms. Most of the vendors raised their information
security standards by improving their back-up procedures,
establishing alternative sites as well as by upgrading the accessibility
and security measures of their sites. Moody's would positively
view systematic annual tests to each vendor's business continuity and
disaster recovery plans.
For a detailed explanation of each assessment please refer to the upcoming
report "Moody's Assessment of Infonavit's Third-party Collection
Agencies (Low Delinquency Loan Pools)."
The collection agencies reassessed are:
Grupo Actuarial y Servicios, S.A. de C.V.
Consorcio Jurídico de Cobranza Especializada, S.A.
de C.V. (CJC)
Consorcio Jurídico Mendoza-Guzmán y Asociados,
Consultores Profesionales Corporativos, S.C. (CPC)
Grupo de Administración de Bienes y Servicios, S.A.
de C.V. (GABSSA)
Servicios Técnicos de Cobranza, S.A. de C.V.
The following assessments reflect Moody's opinion only in connection with
the servicing of Infonavit loans that are assigned to the vendors up to
90days of delinquency.
In assigning the assessments, Moody's considered the collection
ability and operational stability of each vendor, but it did not
take into account their financial stability.
GRUPO ACTUARIAL Y SERVICIOS, S.A. DE C.V.
Moody's downgraded Acser's overall assessment to Average --
(Average minus) from Average. The downgrade is mainly based on
Acser´s below average roll over rates. Compared to other
vendors Acser was not as effective in improving the delinquency status
of a significant share of the loans across the delinquency buckets analyzed
Moody's considers Acser´s collection abilities as below average.
Acser has a well structured and experienced field collections team,
which can implement door knocking campaigns in an average of two days,
in contrast to three days in Moody's last review. However,
according to a roll over rates analysis, during 2010 the company
obtained below average collection metrics. Since Moody's
last review the company has expanded its calling infrastructure by opening
two new call centers and upgrading the calling technology.
Moody's assessed Acser´s operating stability as above average.
Since Moody's last review the company added 7 new offices to its national
coverage network for a total of 57. During the last 18 months the
company upgraded the security standards at its main and secondary sites
as well as reinforced its backing-up procedures by adding automatic
back-up procedures to all the company's LTs and PCs.
During 2010 Acser implemented quality control and internal audit systems
that operate through crossed-reviews. Moody's would positively
view the inclusion of full time and specialized personnel to the quality
control and internal audit teams.
CONSORCIO JURÍDICO DE COBRANZA ESPECIALIZADA, S.A.
de C.V. (CJC)
Moody's affirmed CJC´s Above Average overall assessment.
Moody's considers CJC´s collection abilities as above average.
According to a roll over rates analysis to the portfolio managed by the
company during 2010 CJC managed to prevent rolling over in the higher
delinquency buckets. Since founded, CJC has specialized in
call center collections and during the last years has reinforced its field
Moody's would positively view higher efforts to increase the borrower
contact frequency as well the effectiveness of field collection contacts.
Moody's assessed CJC´s operating stability as above average.
Since Moody's last review the company has upgraded its IT and telecommunications
platforms. The company has also established its own recruiting
and training facilities. At this center, field and calling
agents receive introductory training which includes classroom and workshops
Moody's would positively view extended training schedules for the
seasoned call and field agents.
CONSORCIO JURÍDICO MENDOZA-GUZMÁN Y ASOCIADOS,
Moody's has upgraded CJM's overall assessment to Average from Average-
(Average minus). The upgrade is mainly based on the company´s
continued above average roll over rates as well as on the upgrade of its
telecommunications and IT platforms.
Moody's considers CJM´s collection ability as above average.
According to a roll over rate analysis of the portfolio managed by CJM
during 2010, the company continued to present positive collection
results. Since Moody's last review, the company has
established a proprietary call center, which now leverages the collection
efforts of the door-knocking teams.
Moody's would positively view better customer service metrics as
well as a stricter monitoring of the call and field collection contacts.
In Moody's opinion CJM´s operating stability is average.
Since Moody's last review CJM has completely restructured its IT and calling
platforms. The company installed a site in its headquarters and
established a redundant site in the city of Pachuca. The IT facilities
have standard accessibility and security procedures. The company
follows systematic procedures for backing-up information and now
has business continuity and disaster recovery plans.
CONSULTORES PROFESIONALES CORPORATIVOS, S.C. (CPC)
Moody's affirmed CPC's overall assessment of Above Average-
(Above Average minus).
Moody's assessed CPC's collection abilities as above average.
According to a roll over rates analysis, during 2010 CPC continued
presenting above average collection metrics; specifically the company
managed to prevent deterioration in the riskier delinquency buckets.
The company leverages its collection campaigns with a proprietary and
independent call center situated in the city of Leon, Guanajuato.
Moody's would positively view higher effectiveness to convert collection
calls in higher promises to pay rates.
Moody's assessed CPC´s operating stability as above average.
During the last 18 months the company added four offices to its network.
The company strengthened its IT security standards towards establishing
a redundant site 300 kilometers away from the headquarters.
Moody's would positively view a systematic annual test to CPC's business
continuity and disaster recovery plans.
GRUPO DE ADMINISTRACIÓN DE BIENES Y SERVICIOS, S.A.
DE C.V. (GABSSA)
Moody's upgraded Gabssa's overall assessment to Above Average --
(Above Average minus) from Average+ (Average plus). The upgrade
is mainly based on Gabssa´s above average roll over rates as well
as good call center and field collections performance metrics.
According to Moody's, Gabssa´s collection ability is above
average. The roll over rates analysis performed to the portfolio
managed by the company during 2010 indicates that Gabssa obtained good
collection results across all the delinquency buckets analyzed by Moody´s.
Moody's considers that Gabssa has an opportunity area in improving
the customer service metrics.
Moody's considers Gabssa´s operating stability as above average.
The company renewed its third party certification on information security
standards. Since Moody's last review Gabssa reinforced its IT security
procedures by adding specialized hosting services and also started annual
tests to its business continuity and disaster recovery plans.
The company restructured its training department and included a dedicated
trainer. Gabssa now applies a systematic training calendar to all
new and existing employees.
SERVICIOS TÉCNICOS DE COBRANZA, S.A. DE C.V.
Moody's has upgraded Sertec's overall assessment to Strong-
(Strong minus) from Above Average+ (Above Average plus). The
upgrade is mainly based on the company´s sustained strong collection
results as well as on its well structured monitoring team.
Moody's assessed Sertec´s collection ability as strong. During
2010 Sertec continued presenting outstanding collection results.
For the same period the company presented strong metric in practically
all the delinquency buckets analyzed by Moody's.
Since Moody's last review the company has leveraged its calling
capacities with a well structured field collections team. Moody's
positively views the company's implementation of strict monitoring
Moody's would positively view a higher conversion rate of field
collection promises- to- pay into actual payments;
this is, a higher kept-promises rate.
Moody's assessed Sertec´s operating stability as above average.
The company has a network of 24 offices. Since Moody's last
review the company has significantly reinforced its monitoring and quality
control teams. Now monitoring is carried out by specialized agents
which report directly to the manager in charge of Infonavit's portfolio.
The quality control team is comprised of 14 members that follow a systematic
calendar of visits.
The company has state of the art IT and telecommunications platforms.
Given the volume of the portfolio managed by Sertec Moody's considers
that better accessibility and security standards in the company's
Site and telecommunications departments would contribute to reduce the
risk of operating disruptions.
MOODY´S ASSESSMENTS ON INFONAVIT'S VENDORS
The assessments here assigned do not represent a recommendation to invest.
These assessments are subject to updates at any time and according to
the methodologies of Moody's de México, S.A.
de C.V., institución calificadora de valores.
Moody's assessments represent its view on the collection agencies' abilities
to prevent or mitigate losses in Infonavit´s portfolio. The
assessments reflect Moody's opinion of the agencies' collections ability
and operating stability only in the context of Infonavit´s portfolio
up to 90 days of delinquency and not subject to automatic payroll deductions.
These assessments are not stand-alone vendor quality assessments.
The assessment scale ranges from Strong to Weak; with intermediate
categories of Above Average, Average and Below Average. As
appropriate, a "+" or "-" modifier will be appended
to the relevant assessment to indicate differences among a particular
category. The Strong category may include the "-" modifier.
Moody's assessments also rely in performance metrics; as for example:
total cure and cash flowing rates; timeline management, among
The primary methodology used for these assessments is "Moody's Approach
for the Assessment of Infonavit´s Third Party Collection Agencies"
Structured Finance Group
Moody's de Mexico S.A. de C.V
Senior Vice President
Structured Finance Group
Moody's Investors Service
Moody's de Mexico S.A. de C.V
Moody's Reassesses Six Independent Collection Agencies that Provide Collection Services of Low Delinquency Loan Pools to Infonavit in Mexico
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000