S&P: Mexican banks unaffected

Standard & Poor's said that the upgrade of the United Mexican States to BBB+ from BBB will not affect the BBB+/positive/A-2 counterparty credit ratings on BBVA Bancomer SA, Banco Nacional de Mexico SA (Banamex), Banco Santander SA and HSBC Mexico SA, or the BBB/positive/A-3 counterparty credit rating on Scotiabank Inverlat SA and the BBB-/positive/A-3 counterparty credit rating on Banco Mercantil del Norte SA.

The positive outlook on these banks reflects growing macroeconomic stability, the banking system's increasing role in the economy, good growth prospects, greater credit demand and the possibility for profitable expansion of operations, the agency said.

S&P noted that nevertheless, market penetration into lower-income segments and strong competition pose some asset quality and profitability challenges.

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