S&P: Banamex on watch

Standard & Poor's said it placed its BBB+/A-2 corporate credit rating and CD ratings and mxAAA/mxA-1+ local scale credit rating on Banco Nacional de Mexico SA (Banamex) on Creditwatch negative following the Creditwatch negative placement of its parent company, Citigroup Inc.

The Creditwatch placement is part of an ongoing industry review and follows its recent criteria on stress testing and U.S. banks, the agency noted.

Notwithstanding Citigroup's actions to curtail certain higher-risk lending activities and enhance its collection capabilities, its credit losses have been higher than most large U.S. competitors' in recent quarters reflecting, in particular, its subpar performance in U.S. residential mortgages, home equity loans, credit card loans, and commercial and industrial loans, S&P added.

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