Moody’s rates BBVA Mexico notes Baa3

Moody's Investors Service said it assigned a Baa3 (hyb) junior subordinated debt rating to BBVA Mexico, SA's planned issuance of Basel III-compliant fixed reset subordinated preferred tier 2 capital notes.

The contingent convertible capital notes will be issued through BBVA Mexico's Texas branch, BBVA Mexico and are expected to have a maturity of up to 15 years, with an optional call date in year 10.

“The assigned Baa3 (hyb) rating is positioned two notches below BBVA Mexico's baa1 adjusted baseline credit assessment (adjusted BCA), in line with Moody's standard notching guidance for contingent capital notes. The rating reflects both the loss-absorbing features of the notes and their subordination to the bank's senior debt and deposits,” the agency said in a press release.

The outlook is stable.

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