Mexico, July 11, 2012 -- Moody's Investors Service assigned a long term foreign currency subordinated
debt rating of A3, on review for downgrade, to BBVA Bancomer,
S.A.'s proposed long term foreign currency Tier 2 cumulative
subordinated preferred, 10.5-year notes (Subordinated
Tier 2 Cumulative Notes), issued through the bank's Texas Agency
(BBVA Bancomer, S.A. Texas Agency).
RATINGS RATIONALE
The A3 subordinated debt rating, on review for downgrade,
is underpinned by BBVA Bancomer's supported A2 deposit rating and
follows Moody's notching convention for bank subordinated debt,
as referenced in "Moody's Guidelines for Rating Bank Hybrid Securities
and Subordinated Debt" dated November 2009; available on www.moodys.com
under "Moody's Consolidated Global Bank Rating Methodology".
The A2 anchor rating is incorporates two notches of uplift from the bank's
baa1 standalone credit assessment to reflect our assessment of the probability
of parental and systemic support.
Key features of the notes are the 10.5-year maturity,
its cumulative coupon skip mechanism, and subordination in liquidation.
Coupon skip features include mandatory cancellation of interest based
on regulatory triggers. In the event of BBVA Bancomer's bankruptcy,
liquidation or dissolution, the notes will rank junior to all senior
debt; pari passu with subordinated debt, and senior to most
junior subordinated debt (deeply subordinated debt) and to holders of
common stock.
The principal methodologies used in these ratings were "Moody's
Consolidated Global Bank Rating Methodology" published in June 2012.
Please see the Credit Policy page on www.moodys.com.mx
for a copy of these methodologies.
The date of the last Credit Rating Action was 28 June 2012, when
Moody's downgraded the bank's BFSR to C- from C+ as
well as the bank's local currency deposit ratings to A2 from A1,
and placed these ratings on review for downgrade (for details please refer
to Moody's press release "Moody's concludes review for
downgrade on ten Mexican financial institutions").
BBVA Bancomer is headquartered in Mexico City. As of 31 March 2012,
the bank had around Mx$1,236 billion in assets (source:
CNBV).
The period of time covered in the financial information used to determine
the rating is between 31 December 2006 and 31 March 2012 (source:
Moody's and CNBV).
The sources and items of information used to determine the rating include
2011 and 2012 interim financial statements (source: Grupo Financiero
BBVA Bancomer); year-end 2011 audited financial statements
(source: Grupo Financiero BBVA Bancomer, audited by Deloitte
Touche Tohmatsu Limited); financial statements and information on
market position (source: CNBV); regulatory capital information
(source: Banco de Mexico); debt offering memorandum (source:
BBVA Bancomer).
Additional information on Rating Symbols and Definitions, issuer,
lead analyst, ratings history, etc. can be found in
Moody's local website www.moodys.com.mx.
The following subordinated debt rating was assigned to BBVA Bancomer,
S.A.'s subordinated debt issued through its Texas Agency
(BBVA Bancomer, S.A. Texas Agency):
- Long-term foreign currency subordinated debt rating of
A3, on review for downgrade
REGULATORY DISCLOSURES
The Global Scale Credit Ratings on this press release that are issued
by one of Moody's affiliates outside the EU are endorsed by Moody's
Investors Service Ltd., One Canada Square, Canary Wharf,
London E 14 5FA, UK, in accordance with Art.4 paragraph
3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies.
Further information on the EU endorsement status and on the Moody's
office that has issued a particular Credit Rating is available on www.moodys.com.mx.
For ratings issued on a program, series or category/class of debt,
this announcement provides relevant regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides relevant regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides relevant regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.mx.
The rating has been disclosed to the rated entity prior to public dissemination.
Information sources used to prepare the rating are the following :
parties involved in the ratings, parties not involved in the ratings,
public information, confidential and proprietary Moody's Investors
Service information.
A general listing of the sources of information used in the rating process,
and the structure and voting process for the rating committees responsible
for the assignment and monitoring of ratings can be found in the Disclosure
tab in www.moodys.com.mx.
In compliance with regulatory requirements, Moody's de Mexico
has been informed that during the two-month period prior to the
execution of the rating agreement governing this rating assignment,
no other credit rating agency has assigned a rating on the same issuer/securities
referred to in this press release.
The ratings issued by Moody's de Mexico are opinions regarding the
credit quality of securities and/or their issuers and not a recommendation
to invest in any such security and/or issuer.
Moody's considers the quality of information available on the rated entity,
obligation or credit satisfactory for the purposes of issuing a rating.
Moody's adopts all necessary measures so that the information it uses
in assigning a rating is of sufficient quality and from sources Moody's
considers to be reliable including, when appropriate, independent
third-party sources. However, Moody's is not an auditor
and cannot in every instance independently verify or validate information
received in the rating process.
Please see Moody's Rating Symbols and Definitions on the Rating Process
page on www.moodys.com.mx for further information
on the meaning of each rating category and the definition of default and
recovery.
Please see ratings tab on the issuer/entity page on www.moodys.com.mx
for the last rating action and the rating history. The date on
which some ratings were first released goes back to a time before Moody's
ratings were fully digitized and accurate data may not be available.
Consequently, Moody's provides a date that it believes is the most
reliable and accurate based on the information that is available to it.
Please see the ratings disclosure page on our website www.moodys.com.mx
for further information.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
The ratings issued by Moody's de Mexico are opinions regarding the credit
quality of securities and/or their issuers and not a recommendation to
invest in any such security and/or issuer.
David Olivares Villagomez
VP - Senior Credit Officer
Financial Institutions Group
Moody's de Mexico S.A. de C.V
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000
Mexico
JOURNALISTS: 001-888-779-5833
SUBSCRIBERS:52-55-1253-5700
Maria Celina Vansetti-Hutchins
MD - Banking
Financial Institutions Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's de Mexico S.A. de C.V
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000
Mexico
JOURNALISTS: 001-888-779-5833
SUBSCRIBERS:52-55-1253-5700
Moody's assigns A3 to BBVA Bancomer's proposed foreign currency subordinated notes
