Fitch lifts outlook to positive for five Mexican banks

Fitch Ratings said it revised the outlook of five Mexican banks to positive from stable following the revision in the outlook on Mexico's sovereign ratings to positive.

The affected banks are Nacional Financiera, Banco Nacional de Obras y Servicios Publicos (Banobras), Banco Nacional de Comercio Exterior (Bancomext), Banco Nacional de Mexico (Banamex) and HSBC Mexico.

The agency said the outlook on Mexico's sovereign ratings was revised in view of further improvement in its external solvency ratios, the passage of the Fiscal Responsibility Law and of the civil servants' pension reform - the ISSSTE reform. If the sovereign ratings are eventually upgraded, the correspondent issuer default ratings of Nacional Financiera, Banobras and Bancomext will also be upgraded, because these three entities enjoy explicit sovereign support.

An upgrade in Mexico's sovereign ratings could drive a revision in the country ceiling to A from A-, Fitch said, which would benefit Banamex and HSBC because their foreign-currency long-term issuer default ratings are constrained by the ceiling at A-.

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