Fitch puts Citibanamex on watch

Fitch Ratings said it placed the A- viability rating of Banco Nacional de Mexico, SA (Citibanamex) on Rating Watch negative.

All of the other ratings on Citibanamex are unchanged and unaffected by this action, including the bank's support-driven issuer default ratings of A and F1 with a negative outlook.

The negative watch reflects the potential lowering of Citibanamex's capital adequacy ratios following the bank's recently announced equity restructuring, Fitch said.

There may be downside pressure on the bank's viability rating if projected capital levels are not achieved or sustained in the near future, the agency said.

Fitch said it expects to resolve the watch status no later than six months from now once it has fully assessed the bank's ability to rebuild its capital metrics and estimated levels going forward.

The bank's ratings continue to be highly influenced by the local operating environment, robust franchise and diversified business model, the agency added.

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