Moody’s ups Bancomext notes

Moody’s Investors Service said it upgraded Banco Nacional de Comercio Exterior, SNC’s tier 2 subordinated capital notes to Baa3 (hyb), from Ba1 (hyb), sold through the bank’s Cayman Islands branch, Banco Nacional de Comercio Exterior, or Bancomext CI.

At the same time, Moody’s affirmed the A3 senior debt ratings of Nacional Financiera, SNC and Bancomext CI.

Moody’s upgraded Bancomext CI’s tier 2 subordinated capital notes to Baa3(hyb), from Ba1(hyb), because of the upgrade to ba2, from ba3, of Bancomext’s baseline credit assessment. “The Baa3(hyb) rating reflects the incremental probability of default of the notes absent of extraordinary support from the Mexican government, which is the bank’s shareholder, relative to other financial obligations of Bancomext. This is because the notes have interest deferral provisions tied to high capitalization thresholds, as well as a higher loss given default reflecting the subordination of the notes to other claims of the bank,” said Moody’s in a press release.

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