Moody's affirms Banamex

Moody's Investors Service said it affirmed Banco Nacional de Mexico, SA's ratings, including its A1 long-term foreign-currency debt rating, Aaa.mx long-term Mexican national scale rating and MX-1 short-term Mexican national scale rating.

The outlook is stable.

This affirmation follows the placement of Citigroup Inc.'s ratings under review for possible downgrade.

The agency said Banamex's credit strength is supported by its strong local franchise, characterized by an entrenched consumer business that provides the bank with stable, low-cost core funding and allows the bank to fund itself independently of Citigroup.

Moreover, Banamex's standalone financial strength appears to be to a great extent shielded from problems at the parent bank because of the Mexican bank's strong core earnings generation capacity, liquidity and capitalization, Moody's added.

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