Moody's takes actions on Mexican banks

Moody's de Mexico said it on review for upgrade Banco Nacional de Mexico, SA's (Banamex) C- standalone bank financial strength rating, which maps to a baa1 standalone baseline credit assessment and Banco Mercantil del Norte SA's (Banorte) C- standalone bank financial strength rating, which maps to a baa2 standalone baseline credit assessment.

The agency also changed the outlook on BBVA Bancomer, SA's and Banco Santander (Mexico), SA's (Santander Mexico) standalone bank financial strength ratings of C-, both of which map to standalone baseline credit assessments of baa1, to positive from stable.

Following the actions on bank standalone ratings, Moody's changed the outlook on BBVA Bancomer's long-term local currency Baa2 subordinated debt ratings to positive from stable. The outlook on BBVA Bancomer's long-term Mexican national scale subordinated debt ratings was also changed to positive.

Finally, Banorte's long-term local currency Baa3 subordinated debt ratings, as well as the bank's long-term local currency Ba1 (hyb) junior subordinated debt ratings, were placed on review for upgrade, together with the long-term Mexican national scale subordinated and junior subordinated debt ratings.

At the same time, Moody's upgraded the ratings of three government-related issuers, including Banco Nacional de Comercio Exterior, SNC (Bancomext) Banco Nacional de Obras y Servicios Publicos, SNC (Banobras) and Sociedad Hipotecaria Federal, SNC (SHF), to A3 from Baa1.

The long-term local currency issuer and debt ratings of Bancomext, Banobras and SHF were upgraded to A3, from Baa1. The outlook on all the ratings remains stable.

The actions follow Moody's upgrade of Mexico's government bond ratings and country ceilings to A3 from Baa1.

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