Moody's lowers Interacciones

Moody's de Mexico said it downgraded Banco Interacciones, SA's long-term global local-currency subordinated debt ratings to B3 (hyb), from B1 (hyb) and the Mexican national scale subordinated debt ratings to Ba2.mx (hyb) from Baa1.mx (hyb). The Ba3 long-term global local-currency senior debt rating, A3.mx long-term Mexican national scale rating and MX-3 short-term Mexican national scale rating were affirmed.

The agency also affirmed the bank's E+ standalone bank financial strength rating but lowered the standalone baseline credit assessment to b2, from b1.

The outlook is negative.

The action on the subordinated debt ratings concludes the review for downgrade begun on Dec. 4. Moody's has removed systemic support from subordinated debt instruments, placing them one notch below the bank's adjusted baseline credit assessment.

In lowering Interacciones' standalone baseline credit assessment, the agency noted the high and still growing loan concentrations to single borrowers relative to the bank's capital and earnings, the increasing liquidity risk stemming from structural asset and liability mismatches and the concerns about the future viability of the bank's specialized business franchise posed by potential changes in the regulatory environment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.