MOODY'S INVESTORS SERVICE PLACED ON REVIEW FOR UPGRADE ITS LONG-TERM FOREIGN CURRENCY RATINGS OF ALL MEXICAN BANKS
Moody's Investors Service has placed on review for upgrade the long-term foreign currency debt and long-term foreign currency deposits of all rated Mexican banks. The rating action is the direct result of Moody's having placed its ratings for Mexico's Ba2 country ceiling for foreign currency bonds and notes and for Mexico's B1 country ceiling for foreign-currency bank deposits on review for upgrade.
The review does not affect the financial strength ratings of the rated banks in Mexico, which remain at one of the lowest levels in Latin America. The ratings of the Mexican banks remain at the country rating ceilings because they still enjoy large amounts of government support.
The rating agency noted that the country ceiling review was prompted by a recognition of the benefits accruing to the Mexican economy of the on-going economic integration of North America. This process, when combined with the resolute policy commitments and actions undertaken by the Mexican authorities, appears to have strengthened the economy enough to have allowed it to resist the full effects of the economic shocks which have buffeted other emerging market economies in recent years. In addition, the rating agency noted that the recent program being put in place with official creditors aimed at reducing possible risks associated with next year's national elections further enhances the creditworthiness of the country.
Moody's sovereign review will focus on medium-term structural issues such as industrial competitiveness, changes in the nation's saving rate, the structure of the foreign currency debt over time, the country's ability to maintain appropriate fiscal policies through economic and political cycles, and the economy's ability to continue the integration process with the rest of North America.
The following bank ratings were put on review for upgrade. All of these bank ratings for long-term senior bonds and notes and long-term bank deposits are currently at the Mexican country ceiling:
Banco Nacional de Mexico S.A: long-term foreign-currency deposits of B1,
and long-term senior foreign currency debt of Ba2
Bancomer S.A: long-term foreign-currency deposits of B1
Banco Mercantil del Norte S.A: long-term foreign-currency deposits of B1
Banco Santander Mexicano S.A: long-term foreign-currency deposits of B1,
long-term senior and subordinated foreign currency debt of Ba2
Banca Serfin S.A: long-term foreign-currency deposits of B1, long-term
senior and subordinated foreign currency debt of Ba2
Banco Internacional S.A: long-term foreign-currency deposits of B1
Banpais S.A: long-term foreign-currency deposits of B1, long term senior
foreign currency debt of Ba2
Banco Inverlat S.A: long-term foreign-currency deposits of B1
Nacional Financiera S.N.C., Grand Cayman Branch long-term foreign currency debt of Ba2
Banobras S.N.C: long-term foreign currency debt of Ba2
Banco Nacional de Comercio Exterior, S.N.C: long-term foreign currency
debt of Ba2
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