Fitch rates BBVA Bancomer notes BBB-

Fitch Ratings said it expects to assign a BBB- rating to BBVA Bancomer’s Basel III-compliant tier 2 subordinated capital notes.

The issue rating is three notches below BBVA Bancomer’s viability rating of A-

The agency said the non-performance risk of the proposed notes is relatively high, common to most legacy hybrids in Mexico, since these securities are subject to high triggers for coupon deferrals.

Fitch also said the likelihood of principal write-down is partially mitigated by the various remedial actions that local regulations establish while the bank remains a going-concern.

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