Fitch might cut Banamex rating

Fitch Ratings said Banco Nacional de Mexico, SA's A long-term local-currency issuer default rating remains on Rating Watch negative. All other ratings were affirmed and removed from Rating Watch negative, including the bank's A- long-term foreign-currency issuer default rating, F1 short-term foreign- and local-currency issuer default ratings, AAA(mex) long term national-scale rating, F1+(mex) short-term national-scale rating and the AAA(mex) long-term national-scale rating for local senior debt issues.

The outlook is stable for these ratings.

Banamex's long-term issuer default ratings reflect the strong willingness of its parent, Citigroup Inc. (on Rating Watch negative) to support the bank given Banamex's high strategic importance to Citigroup's global franchise. These ratings could be affected if Citigroup is restricted from freely providing support to or maintaining ownership in Banamex. Therefore, Banamex's A long-term local-currency issuer default rating could be downgraded following a potential similar action on Citigroup's issuer default ratings, the agency said.

But even if Banamex's local-currency issuer default rating is downgraded following a similar action for Citigroup, the downside potential is limited to the level implied by Banamex's viability rating, currently A-, Fitch said. As a result, the A- foreign-currency issuer default rating was affirmed.

© 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.