Mexico, December 03, 2010 -- Moody's has assigned a bond fund credit rating of Baa and market
risk rating of MR3 (moderate) to Fondo BBVA Bancomer Deuda LPC,
S.A. de C.V. (B+CORP); a fund managed
by BBVA Bancomer Gestión, S.A. de C.V.,
Sociedad Operadora de Sociedades de Inversión.
In addition, Moody's de Mexico assigned to B+CORP national
scale ratings of Aa.mx and AA on the Mexican authority, Comisión
Nacional Bancaria y de Valores (CNBV) homogeneous scale. The agency
also has assigned to the fund a market risk rating of 4 (between moderate
and high) under the CNBV homogeneous scale.
"B+CORP fund is a specialized investment vehicle which principally
invests in Mexican corporate bonds", said Moody's analyst,
José Angel Montaño. "The fund will complement
its holdings of Mexican corporate with investments in Mexican government
obligations, Moody's rated Baa1 with stable outlook,
and to a lesser extend the IBoxx Investment Grade Corporate Bond Fund
ETF (Exchange Traded Fund)", he added.
B+CORP will be heavily concentrated in investments minimum rated
Baa2, which is the driving factor of the Baa bond fund rating.
"The agency expects that the fund will maintain this investment
strategy in the future", Montaño said.
Moody's market risk rating of MR3, reflects the agency's
expectation that the fund may have a moderate sensitivity to changes in
interest rates and other market conditions. "Some Mexican
corporate bonds that the fund may hold lack of a robust secondary market",
Montaño mention. The investment in such type of securities
may add volatility to the fund's Net Asset Values (NAVs).
In addition, B+CORP may be exposed to securities non Mexican
peso denominated, which also may add additional volatility to the
fund's NAVs. However, the fund will be exposed to short
to medium term maturity securities and the duration limit is three years.
BBVA Bancomer Gestión, S.A. de C.V.,
Sociedad Operadora de Sociedades de Inversión, is one of
the leading asset managers in Mexico. As of September 2010,
the company had approximately US$20 billion in assets under management.
The fund advisor is a wholly-owned subsidiary of Grupo Financiero
BBVA Bancomer, S.A. de C.V.
The principal methodologies used in rating the funds were Moody's Managed
Funds Credit Quality Ratings Methodology and Moody's Money Market
and Bond Fund Market Risk Ratings, published in July 2004 and available
on www.moodys.com.mx in the Rating Methodologies
sub-directory under the Research & Ratings tab. Other
methodologies and factors that may have been considered in the process
of rating these funds can also be found in the Rating Methodologies sub-directory
on Moody's website.
Moody's money market and bond fund ratings are opinions of the investment
quality of shares in mutual funds and similar investment vehicles which
principally invest in short- and long-term fixed-income
obligations, respectively. As such, these ratings incorporate
Moody's analysis of a fund's published investment objectives
and policies, the creditworthiness of the assets held by the fund,
as well as the management characteristics of the fund.
Moody's National Scale Ratings (NSRs) are intended as relative measures
of creditworthiness among debt issues and issuers within a country,
enabling market participants to better differentiate relative risks.
NSRs differ from Moody's global scale ratings in that they are not globally
comparable with the full universe of Moody's rated entities, but
only with NSRs for other rated debt issues and issuers within the same
country. NSRs are designated by a ".nn" country
modifier signifying the relevant country, as in ".mx"
for Mexico. For further information on Moody's approach to national
scale ratings, please refer to Moody's Rating Implementation Guidance
published in August 2010 entitled "Mapping Moody's National Scale
Ratings to Global Scale Ratings."
Moody's market risk ratings are opinions of the relative degree of volatility
of a rated fund's net asset value (NAV). In forming an opinion
on the fund's future price volatility, Moody's analysts
consider risk elements that may have an effect on a fund's net asset
value, such as interest rate risk, prepayment and extension
risk, liquidity and concentration risks, currency risk,
and derivatives risk. The ratings are not intended to consider
prospective performance of a fund with respect to price appreciation or
Moody's Mexican National Scale Fund Credit Ratings:
Aaa.mx: strongest quality relative to other domestic issuers
Aa.mx: high quality relative to other domestic issuers
A.mx: above-average quality relative to other domestic
Baa.mx: average quality relative to other domestic issuers
Ba.mx: below-average quality relative to other domestic
B.mx: weak quality relative to other domestic issuers.
Moody's national scale fund ratings reflect Moody's assessment of portfolio
credit quality within the context of the Mexican fixed-income market
and are not comparable to its global credit rating scale.
Moody's Market Risk Rating Scale:
MR1: Very Low
MR5: Very High
Homogeneous Fund Volatility Rating Scale - CNBV
1 Extremely low sensitivity to changes in market conditions
2 Low sensitivity to changes in market conditions
3 Between low and moderate sensitivity to changes in market conditions
4 Moderate sensitivity to changes in market conditions
5 Between moderate and high sensitivity to changes in market conditions
6 High sensitivity to changes in market conditions
7 Very high sensitivity to changes in market conditions
Information sources used to prepare the credit 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, confidential and proprietary Moody's Analytics'
Moody's Investors Service considers the quality of information available
on the issuer or obligation satisfactory for the purposes of assigning
a credit rating.
Moody's adopts all necessary measures so that the information it uses
in assigning a credit 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 ratings tab on the issuer/entity page on Moodys.com
for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to
a time before Moody's Investors Service's Credit Ratings were fully digitized
and accurate data may not be available. Consequently, Moody's
Investors Service 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
for further information.
Please see the Credit Policy page on Moodys.com for the methodologies
used in determining ratings, further information on the meaning
of each rating category and the definition of default and recovery.
Jose Angel Montano
Asst Vice President - Analyst
Global Managed Investments Group
Moody's de Mexico S.A. de C.V
Senior Vice President
Global Managed Investments Group
Moody's Investors Service
Moody's de Mexico S.A. de C.V
Moody's assigns bond fund and market risk ratings to B+CORP fund managed by BBVA Bancomer Gestión
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000