Moody’s cuts Barclays Mexico

Moody’s de Mexico said it downgraded the long-term global local and foreign currency deposit ratings of Barclays Bank Mexico, SA to Ba1 from Baa3.

The agency also downgraded the bank's adjusted baseline credit assessment to ba1 from baa3, its short-term global local and foreign currency deposit ratings to Not Prime from Prime-3, and its long-term Mexican national scale deposit rating to A1.mx from Aa3.mx. Further, the bank's long- and short-term counterparty risk assessments were downgraded to Baa3(cr) and Prime-3(cr), from Baa2(cr) and Prime-2(cr).

In addition, Moody's downgraded the long-term global local currency issuer rating of Barclays Capital Casa de Bolsa, SA de CV (Barclays Capital CB) to Ba1 from Baa3. The short-term global local currency issuer rating was downgraded to Not Prime from Prime-3 and the long-term Mexican national scale issuer rating to A1.mx from Aa3.mx.

At the same time, Moody's affirmed Barclays Mexico's ba2 baseline credit assessment and MX-1 short-term Mexican national scale deposit rating, as well as Barclays Capital CB's MX-1 short-term Mexican national scale issuer rating.

All Barclays Mexico and Barclays Capital CB long-term ratings now stable have outlooks. This concludes the review for downgrade initiated on Feb. 23.

The action follows the April 4 downgrade of the ratings and baseline credit assessment of Barclays Mexico's parent, Barclays Bank plc (long-term deposits and senior unsecured debt A2 stable, BCA baa3) due to ongoing credit challenges and ring-fencing implementation.

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