Moody's lowers four Mexico banks

Moody's Investors Service said it downgraded the counterparty risk assessments of four Mexican banks.

Banco Mercantil del Norte, SA's long-term counterparty risk assessment was downgraded to A3(cr) from A2(cr) and short-term counterparty risk assessment to prime-2(cr) from prime-1(cr).

Banco Nacional de Mexico, SA's long-term counterparty risk assessment was downgraded to A3(cr) from A2(cr) and short-term counterparty risk assessment to prime-2(cr) from prime-1(cr).

Banco Santander Mexico, SA's long-term counterparty risk assessment was downgrade to A3(cr) from A2(cr) and short-term counterparty risk assessment to prime-2(cr) from prime-1(cr).

BBVA Bancomer, SA's long-term counterparty risk assessment was downgraded to A3(cr) from A2(cr) and short-term counterparty risk assessment to prime-2(cr) from prime-1(cr).

The action does not affect any other ratings or assessments of the four Mexican banks, Moody's said.

The downgrades reflect the likelihood of a default by the affected banks on their operating obligations and other contractual commitments due to their alignment with the national government, Moody's said.

The agency rates the Mexican government at A3 with a stable outlook.

This assessment incorporates a view that there is a very high default correlation, or dependence, between the banks and the sovereign, the agency said.

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