Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's reviews ratings of Mexico's financial institutions

 The document has been translated in other languages

06 Aug 2009

Mexico City, August 06, 2009 -- Moody's Investors Service placed under review for possible downgrade the local currency deposit ratings of three banks and the local currency and foreign currency issuer ratings of five financial, government-related issuers (GRIs). The reviews are the result of the rating agency's global reassessment of the extent to which local currency deposit ratings should be more closely aligned with that of the supporting government given the role systemic support plays in such ratings. The local currency debt and deposit ratings of three other Mexican banks were already under review and continue on review for possible downgrade.

Of the 26 banks and government--related issuers it currently rates in Mexico, Moody's explains that only the largest financial institutions are being affected by this reassessment of systemic support considerations because their deposit and issuer ratings benefit from several notches of uplift over the ratings implied by their inherent financial strength.

Separately, Moody's affirmed with stable outlooks the Baa1 foreign currency deposit ratings of six Mexican banks, as well as of three Mexican subsidiaries of foreign wholesale banks following the affirmation with stable outlook of Mexico's government bond rating and bond and deposit ceilings announced August 5, 2009.

Placed under review for downgrade are the local currency deposit ratings of Banamex and Scotiabank Mexico, as well as Banorte's local currency deposit and debt ratings. These banks' financial strength ratings (BFSR), which reflect their stand-alone financial strength without benefit of systemic support considerations, were affirmed.

The GRIs whose ratings were placed under review are Instituto para la Proteccion al Ahorro Bancario (IPAB), Sociedad Hipotecaria Federal, S.N.C. (SHF), Banco Nacional de Comercio Exterior, S.N.C. (Bancomext), Banco Nacional de Obras Publicas, S.N.C. (Banobras), and Nacional Financiera, S.N.C. (Nafin).

The local currency debt and deposit ratings of BBVA Bancomer, S.A, HSBC Mexico, S.A., and Banco Santander, S.A. were previously placed under review and remain on review for possible downgrade.

The foreign currency deposit ratings affirmed with a stable outlook include those of BBVA Bancomer, S.A., Banco Nacional de Mexico, S.A. (Banamex), Banco Santander, S.A. (Mexico), HSBC Mexico, S.A., Banco Mercantil del Norte, S.A. (Banorte), Scotiabank Inverlat, S.A. (Scotiabank Mexico), as well as those of Banco Credit Suisse Mexico, S.A., Deutsche Bank (Mexico), S.A. and ING Bank, S.A. (Mexico).

The Mexican National Scale ratings of Aaa.mx/MX-1 assigned to all the above-mentioned institutions have been affirmed with stable outlook.

A complete list of today's ratings actions is provided at the end of this press release.

REVIEW OF LOCAL CURRENCY DEPOSIT, SENIOR DEBT AND ISSUER RATINGS

The review will determine the extent to which the level of systemic support that is currently incorporated into the above-mentioned institutions' local currency ratings -- which range from two to seven notches of uplift over their stand-alone financial strength -- should be more closely aligned with the Mexican government's local- currency bond rating of Baa1. The review is prompted by Moody's reassessment of the level of probable systemic support available to this type of rating.

Moody's believes that most governments are at least as likely, if not more likely, to support their banking systems as they are to service their own debt. However, the rating agency has also recognized that the capacity of a country and its central bank to support the nation's banks may converge with -- and may be increasingly constrained by -- the government's own debt capacity when faced with situations of systemic stress. This is particularly true when governments are faced with situations of systemic crises that could place indiscriminate pressure on the major banks in a system; the current financial crisis has exposed this risk in many systems globally, requiring Moody's to reassess the amount of uplift above the debt ratings of governments that is appropriate in its evaluation of systemic support to banks.

This approach is outlined in Moody's Special Comment entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", which was published in May 2009.

At present, Moody's incorporates no or very low probability of systemic support to the local currency deposit ratings of many of the medium and small rated Mexican banks and therefore their ratings are not affected by this reassessment of systemic support. The deposit ratings of foreign wholesale banks are also not affected by this reassessment because their rating benefit primarily from parental support.

As part of its review, Moody's will analyze the specific circumstances of Mexico to determine the appropriate level of systemic support for Mexican bank ratings, and the implications for the institutions that have been identified as potentially affected. Factors that the rating agency will consider in its assessment of systemic support include the following: (i) the size of the banking system in relation to government resources; (ii) the level of stress in the banking system; (iii) the foreign currency obligations of the banking system relative to the government's own foreign exchange resources; and (iv) changes to government political patterns and priorities.

In Moody's view, the Mexican government's actions during current and past crises are indicative of the high priority it places on financial system stability. Moreover, the size of the Mexican banking system is small relative to the country's GDP, and foreign currency bank liabilities are not large and are relatively contained. Moreover, credit stress in the banking system has been moderate and largely caused by deterioration in credit card loans, as well as by certain corporate restructurings. Bank fundamentals have come under pressure as a result of the conspicuous downturn of the Mexican economy, and they may deteriorate further in the remaining of 2009 and in 2010.

Moody's also notes that the major Mexican development banks, following a government mandate, have been playing an important role in supporting the local capital markets -- particularly as guarantors in the commercial paper market -- since the second half of 2008. This trend, which clearly speaks to the government's willingness to provide financial support, is expected to hold up despite the recent budget expense cuts announced for 2009.

BANK FINANCIAL STRENGTH RATINGS AFFIRMED

The ratings reviews of Banamex, Banorte and Scotiabank Mexico do not result from any change in Moody's opinion of their underlying financial strength. Moody's, infact, is affirming their bank financial strength ratings.

In affirming Banamex's C+ BFSR (which maps to a baseline credit assessment -- BCA -- of A2) with stable outlook, Moody's concluded that the bank's strong capitalization is well positioned to withstand potentially higher credit losses over the near term at its current rating level. This is so despite the challenges posted by the difficult operating environment and the fact that management is still dealing with the sharp deterioration of the bank's credit card portfolio.

Moreover, Moody's notes that Banamex, as one of the premier providers of financial services in Mexico, maintains a strong local franchise, and its track record of profitability derives from a diversified base of earnings, a low-cost funding base, and efficient operation overall.

In affirming Banorte's C- BFSR (BCA of Baa2) with negative outlook, Moody's explained that the bank's capitalization -- although weaker among the group of six largest banks in Mexico -- could well withstand potentially higher credit losses in the near term. Yet, Moody's believes that Banorte's balance sheet is particularly exposed because of its sizable corporate loan concentrations and a poorly performing credit card portfolio, which could weaken its future earnings and risk- absorption capacity.

In affirming Scotiabank Mexico's C- BFSR (BCA of Baa2) with stable outlook, Moody's took into consideration the results of its anticipated and stressed scenarios, which revealed that the bank's recurring earnings and notably strong capitalization seem more than adequate to absorb the estimated cumulative stress loss on its loan portfolio.

PRINCIPAL METHODOLOGIES AND LAST RATING ACTIONS

The principal methodologies used in rating these banks were "Bank Financial Strength Ratings: Global Methodology" and "Incorporation of Joint Default Analysis into Moody's Bank Ratings: A Refined Methodology". The principal methodology used in rating these GRIs was "The Application of Joint Default Analysis to Government Related Issuers". These methodologies can be found on www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that may have been considered in the rating process can also be found in the Credit Policy & Methodologies directory.

The long- term Mexican National Scale rating of Aaa.mx indicates issuers or issues with the strongest creditworthiness relative to other domestic issuers. The short- term Mexican National Scale rating of MX-1 indicates that the issuer has the strongest ability to repay short- term senior unsecured debt obligations relative to other domestic issuers'.

The last rating action on BBVA Bancomer was on July 31, 2009, when Moody's confirmed the bank's C+ BFSR with stable outlook, and maintained the review for possible downgrade on the deposits and debt ratings.

The last rating action on Banamex was on April 23, 2009 Moody's assigned first-time issuer ratings to Acciones y Valores Banamex Casa de Bolsa, S.A. On March 2, 2009 Moody's affirmed Banamex's ratings (BFSR, LC and FC deposits, and NSR) following a rating action on parent Citigroup, which saw its senior debt downgraded to A3.

The last rating action on Banco Santander Mexico was on July 31, 2009, when Moody's confirmed the bank's C BFSR with stable outlook, and maintained the review for possible downgrade on the deposits and debt ratings.

The last rating action on HSBC Mexico was on July 1st, 2009, when Moody's placed on review for possible downgrade the bank's BFSR, and local currency deposit and debt (senior and subordinated) ratings.

The last rating action on Banorte was on March 31, 2009, when Moody's assigned first-time ratings to Banorte's subordinated notes. On March 11, 2009, first-time issuer ratings were assigned to Casa de Bolsa Banorte. On March 10, 2009 Moody's affirmed the bank's BFSR and GLC deposits ratings, but the outlook was changed to negative from stable.

The last rating action on Scotiabank Mexico was on March 20, 2009, when Moody's assigned first-time issuer ratings to Scotia Inverlat Casa de Bolsa. On March 19, 2009, the bank's financial strength and deposit ratings were affirmed.

The last rating action on Banco Credit Suisse Mexico was on June 29, 2009 when Moody's assigned provisional (P) long- and short- term global local- currency senior debt ratings of A2/Prime-2 to the bank's Mx$10 billion Senior Debt Program. On February 11, 2009, Moody's lowered the global local currency deposit ratings of several foreign wholesale banks in Mexico as a result of the reassessment of the probability of support - to low from moderate - that could be expected from the Mexican government to these banks, in line with Moody's Joint Default Methodology.

The last rating action on Deutsche Bank (Mexico) was on March 10, 2009 when Moody's assigned long- and short- term global local- currency issuer ratings of A2/Prime-2, with negative outlook, to Deutsche Securities S.A. de C.V. Casa de Bolsa (Deutsche Securities México). On February 11, 2009, Moody's lowered the global local- currency deposit ratings of several foreign wholesale banks in Mexico as a result of the reassessment of the probability of support -- to low from moderate -- that could be expected from the Mexican government to these banks, in line with Moody's Joint Default Methodology.

The last rating action on ING Bank (Mexico) was on February 13, 2009 when Moody's assigned long- and short- term global local currency issuer ratings of A3 and Prime-2, respectively, to ING (Mexico), S.A. de C.V. Casa de Bolsa (ING Casa de Bolsa). On February 11, 2009 the global local- currency deposit ratings of several foreign wholesale banks in Mexico was lowered as a result of the reassessment of the probability of support that could be expected from the Mexican government to these banks, in line with Moody's Joint Default Methodology.

The last rating actions on IPAB, Bancomext, Nafin, Banobras and SHF were on October 30, 2006, when GLC issuer ratings were upgraded following a review prompted by the implementation of Moody's revised rating methodology for GRIs.

DETAILED LIST OF RATINGS AND ACTIONS TAKEN

BBVA Bancomer, S.A.

- Global local currency deposits of Aa2/Prime-1: Remains on review for possible downgrade

- Global local currency senior debt of Aa2: Remains on review for possible downgrade

- Global local currency subordinated debt of Aa3: Remains on review for possible downgrade

- Global local currency junior subordinated debt of Aa3: Remains on review for possible downgrade

- Foreign currency subordinated debt of A1: Remains on review for possible downgrade

- Foreign currency deposits of Baa1/Prime-2: Affirmed with stable outlook

- Mexican National Scale deposit and debt ratings (senior and subordinated) of Aaa.mx/MX-1: Affirmed with stable outlook

- Hipotecaria Nacional, S.A. de C.V.'s global local currency issuer rating of Aa3: Remains on review for possible downgrade

- Hipotecaria Nacional, S.A. de C.V.'s Mexican National Scale issuer rating of Aaa.mx: Affirmed with stable outlook

Banco Nacional de Mexico, S.A.

- Bank financial strength rating of C+: Affirmed with stable outlook

- Global local currency deposits of Aa3/Prime-1: On review for possible downgrade

- Foreign currency senior debt of A1: On review for possible downgrade

- Foreign currency deposits of Baa1/Prime-2: Affirmed with stable outlook

- Mexican National Scale deposit ratings of Aaa.mx/MX-1: Affirmed with stable outlook

- Acciones y Valores Banamex, Casa de Bolsa S.A.'s global local currency issuer rating of Aa3/Prime-1: On review for possible downgrade

- Acciones y Valores Banamex, Casa de Bolsa S.A.'s Mexican National Scale issuer rating of Aaa.mx/MX-1: Affirmed with stable outlook

Banco Santander, S.A. (Mexico)

- Global local currency deposits of Aa3/Prime-1: Remains on review for possible downgrade

- Global local currency senior debt of Aa3/Prime-1: Remains on review for possible downgrade

- Foreign currency senior debt of A1/Prime-1: Remains on review for possible downgrade

- Foreign currency deposits of Baa1/Prime-2: Affirmed with stable outlook

- Mexican National Scale deposit and senior debt ratings of Aaa.mx/MX-1: Affirmed with stable outlook

- Casa de Bolsa Santander, S.A.'s global local currency issuer rating of Aa3/Prime-1: Remains on review for possible downgrade

- Casa de Bolsa Santander, S.A.'s Mexican National Scale issuer rating of Aaa.mx/MX-1: Affirmed with stable outlook

HSBC Mexico, S.A.

- Global local currency deposits of Aa2: Remains on review for possible downgrade

- Global local currency senior debt of Aa2: Remains on review for possible downgrade

- Global local currency short term debt and deposit ratings of Prime-1: On review for possible downgrade

- Global local currency subordinated debt of Aa3: Remains on review for possible downgrade

- Global local currency junior subordinated debt of A1: Remains on review for possible downgrade

- Foreign currency senior debt of A1: Remains on review for possible downgrade

- Foreign currency shor term debt rating of Prime-1: On review for possible downgrade

- Foreign currency deposits of Baa1/Prime-2: Affirmed with stable outlook

- Mexican National Scale deposit and debt ratings (senior and subordinated) of Aaa.mx/MX-1: Affirmed with stable outlook

- HSBC Mexico, Casa de Bolsa, S.A's global local currency issuer rating of Aa2/Prime-1: Remains on review for possible downgrade

- HSBC Mexico, Casa de Bolsa, S.A's Mexican National Scale issuer rating of Aaa.mx/MX-1: Affirmed with stable outlook

Banco Mercantil del Norte, S.A.

- Bank financial strength rating of C-: Affirmed with negative outlook

- Global local currency deposits of A2/Prime-1: On review for possible downgrade

- Global local currency subordinated debt of A3: On review for possible downgrade

- Global local currency junior subordinated debt of Baa1: On review for possible downgrade

- Foreign currency subordinated debt of A3: On review for possible downgrade

- Foreign currency junior subordinated debt of Baa1: On review for possible downgrade

- Foreign currency deposits of Baa1/Prime-2: Affirmed with stable outlook

- Mexican National Scale deposit and debt ratings (senior and subordinated debt) of Aaa.mx: Affirmed with stable outlook

- Mexican National Scale junior subordinated debt of Aaa.mx: On review for possible downgrade

- Arrendadora Banorte, S.A.'s global local currency issuer rating of A2/Prime-1: On review for possible downgrade

- Arrendadora Banorte, S.A.'s Mexican National Scale issuer rating of Aaa.mx: Affirmed with stable outlook

- Factor Banorte, S.A.'s global local currency issuer rating of A2/Prime-1: On review for possible downgrade

- Factor Banorte, S.A.'s Mexican National Scale issuer rating of Aaa.mx: Affirmed with stable outlook

- Casa de Bolsa Banorte, S.A.'s global local currency issuer rating of A2/Prime-1: On review for possible downgrade

- Casa de Bolsa Banorte, S.A.'s Mexican National Scale issuer rating of Aaa.mx/MX-1: Affirmed with stable outlook

Scotiabank Inverlat, S.A.

- Bank financial strength rating of C-: Affirmed with stable outlook

- Global local currency deposits of A1/Prime-1: On review for possible downgrade

- Foreign currency deposits of Baa1/Prime-2: Affirmed with stable outlook

- Mexican National Scale deposit ratings of Aaa.mx/MX-1: Affirmed with stable outlook

- Scotia Inverlat Casa de Bolsa, S.A.'s global local currency issuer rating of A1/Prime-1: On review for possible downgrade

- Scotia Inverlat Casa de Bolsa, S.A.'s Mexican National Scale issuer rating of Aaa.mx/MX-1: Affirmed with stable outlook

Banco Credit Suisse Mexico, S.A.

- Foreign currency deposits of Baa1/Prime-2: Affirmed with stable outlook

Deutsche Bank (Mexico), S.A.

- Foreign currency deposits of Baa1/Prime-2: Affirmed with stable outlook

ING Bank, S.A. (Mexico)

- Foreign currency deposits of Baa1/Prime-2: Affirmed with stable outlook

Instituto para la Protección al Ahorro Bancario

- Global local currency issuer ratings of Aaa/Prime-1: On review for possible downgrade

- Mexican National Scale issuer ratings of Aaa.mx/MX-1: Affirmed with stable outlook

Banco Nacional de Comercio Exterior, S.N.C.

- Foreign currency debt ratings of A1/Prime-1: On review for possible downgrade

Nacional Financiera, S.N.C.

- Foreign currency debt ratings of A1/Prime-1: On review for possible downgrade

- Mexican National Scale issuer and senior debt ratings of Aaa.mx/MX-1: Affirmed with stable outlook

Banco Nacional de Obras y Servicios Públicos, S.N.C.

- Global local currency issuer ratings of Aaa/Prime-1: On review for possible downgrade

- Foreign currency issuer ratings of A1/Prime-1: On review for possible downgrade

- Mexican National Scale issuer ratings of Aaa.mx/MX-1: Affirmed with stable outlook

- Mexican National Scale debt rating of Aaa.mx: Affirmed with stable outlook

Sociedad Hipotecaria Federal, S.N.C.

- Global local currency issuer ratings of Aaa/Prime-1: On review for possible downgrade

- Mexican National Scale issuer ratings of Aaa.mx/MX-1: Affirmed with stable outlook

Mexico City
David Olivares Villagomez
VP - Senior Credit Officer
Financial Institutions Group
Moody's de Mexico S.A. de C.V
Telephone:+52-55-1253-5700

New York
M. Celina Vansetti
Senior Vice President
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's reviews ratings of Mexico's financial institutions
No Related Data.
Moodys.com