Moody's rates Banorte notes Ba2 (hyb)

Moody's Investors Service said it assigned definitive Ba2 (hyb) foreign-currency junior subordinated debt ratings to two of Banco Mercantil del Norte, SA(Cayman I)'s (Banorte) perpetual callable subordinated non-preferred non-cumulative additional tier 1 capital notes with an optional redemption on the first call date.

The callable junior subordinated non-preferred non-cumulative tier 1 capital notes were issued through Banorte's Cayman Islands branch, Banco Mercantil del Norte, SA (Cayman Islands).

The capital notes totaled $1.1 billion and were split into two tranches of different maturities and coupons, the agency said.

This junior subordinated rating is likely to face downward pressure if the bank's core capitalization levels significantly decrease or if its expansion into consumer and commercial lending leads to a substantial deterioration of asset quality, Moody's said.

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