ASESORES Y GESTORES FINANCIEROS SA

EthiFinance Ratings assigns for the first time a "BBB" rating with a "Stable" outlook to Asesores y Gestores Financieros. Asesores y Gestores Financieros (hereinafter referred to as "A&G" or the "Group") is an independent group specialized in advisory services and comprehensive wealth management for high-net-worth families and institutions. The rating is based on its leadership in independent wealth management and advisory in Spain. We positively value their adequate income diversification thanks to their different lines of businesses. However, its main source of risk exposure is concentrated in the bank's credit risk, although this is limited due to the use of financial assets as loan guarantees, with an overall loan-to-value (LTV) ratio below 80%. In addition, its low levels of own investments are considered a strength, as reflected in the ratio of equity to self-managed investments. The rating is constrained by their concentrated geographic distribution between the national territory and Luxembourg. Additionally, the Group's profitability is rather moderate and is influenced by the performance of financial markets.