New York, April 04, 2016 -- Moody's Investors Service (MIS) today placed on review for downgrade the
foreign currency senior unsecured debt ratings and/or program ratings
assigned to Banco Nacional de México, S.A.
and Banco Santander (México), S.A., the
foreign currency senior unsecured ratings assigned to HSBC México,
S.A. Cayman Islands, the local currency senior unsecured,
subordinated, and junior subordinated ratings of BBVA Bancomer Texas
Agency, the foreign currency subordinated rating of Santander Mexico,
and the foreign currency junior subordinated debt ratings of Banco Mercantil
del Norte, S.A. At the same time Moody's placed
on review for downgrade the counterparty risk assessment (CR Assessment)
of the 3 branches.
RATINGS RATIONALE
In addition, Moody's changed the outlook on the foreign currency
debt ratings of Banco Nacional de Comercio Exterior, S.N.C.
(CI) and Nacional Financiera, S.N.C. to negative
.
These actions follow the rating actions taken by Moody's de Mexico
(MdM) on the ratings of these entities or those of their parent banks,
which MIS uses as anchors for the foreign branches' ratings.
The reviews will generally consider the impact of Mexico's weaker
economic prospects and less favorable operating environment on the banks'
financial and risk profiles, in addition to assessing the likelihood
that the banks will benefit from government support. For details
on the rating actions taken on the above mentioned banks and parent banks
please see the MdM press release entitled "Moody's reviews ratings of
Mexican financial institutions".
The actions on the Mexican government development banks follow Moody's
decision to change the outlook of Mexico's A3 government bond rating
to negative from stable on 31 March 2016. The ratings of these
government related issuers (GRI) take into account the very high likelihood
that the Mexican government will provide extraordinary financial support
in case of financial stress. Our assessment of government support
takes into account statutory support from the Mexican government that
commits the government to fulfil the banks' financial obligations.
This statutory support reflects these GRIs' status as arms of the
government with specific public policy roles to promote strategic priorities
for the government. For additional information on the negative
outlook on the government, please refer to the related press release:
https://www.moodys.com/research/Moodys-changes-Mexicos-outlook-to-negative-from-stable-affirms-A3--PR_344609.
A detailed list of affected entities and ratings is provided below.
LIST OF ALL AFFECTED RATINGS
The following ratings were placed on review for downgrade:
-- BBVA Bancomer Texas Agency
Long-term global local currency senior unsecured debt rating of
A3
Long-term global local currency subordinated debt rating of Baa2
Long-term global local currency subordinated debt rating of Baa3
(hyb)
Long-term global local currency junior subordinated debt rating
of Baa3 (hyb)
Long-term counterparty risk assessment of A2(cr)
Short-term counterparty risk assessment of Prime-1(cr)
Overall rating outlook: Review for downgrade
- Banco Nacional de México, S.A.
Long-term foreign currency senior unsecured MTN debt program rating
of (P)A3
- Banco Santander (México), S.A.
Long-term foreign currency senior unsecured debt rating of A3
Long-term foreign currency senior unsecured MTN debt program rating
of (P)A3
Long-term foreign currency subordinated debt rating of Baa3 (hyb)
- Banco Mercantil del Norte, S.A.
Long-term foreign currency junior subordinated debt rating of Baa3
(hyb)
-- Banco Mercantil del Norte (Cayman I)
Long-term counterparty risk assessment of A2(cr)
Short-term counterparty risk assessment of Prime-1(cr)
Overall rating outlook: Review for downgrade
-- HSBC México, S.A. Cayman Islands
Long-term foreign currency senior unsecured MTN debt program rating
of (P)A2
Short-term foreign currency senior unsecured MTN debt program rating
of (P)Prime-1
Long-term counterparty risk assessment of A1(cr)
Overall rating outlook: Review for downgrade
The following ratings were affirmed and their outlooks were changed to
negative from stable:
-- Banco Nacional de Comercio Exterior, S.N.C.
(CI)
Long-term foreign currency senior unsecured debt rating of A3
Overall rating outlook: Negative
- Nacional Financiera, S.N.C.
Long-term foreign currency senior unsecured debt rating of A3
The principal methodology used in rating BBVA Bancomer, S.A.
Texas Agency, Banco Mercantil del Norte, S.A.,
HSBC Mexico, S.A. Cayman Islands, Banco Santander
(Mexico), S.A., and Banco Mercantil del Norte,
S.A.(Cayman I) Banks published in January 2016. The
principal methodology used in rating Banco Nacional de Comercio Exterior,
SNC (CI) and Nacional Financiera, S.N.C. was
Government-Related Issuers published in October 2014. Please
see the Ratings Methodologies page on www.moodys.com for
a copy of these methodologies.
Banamex is headquartered in Mexico City, Mexico and reported MXN1,149
billion in assets (source: Comisión Nacional Bancaria y de
Valores), as of December 2015.
Santander México is headquartered in Mexico City, Mexico
and reported MXN1,164 billion in assets (source: Comisión
Nacional Bancaria y de Valores), as of December 2015.
Banorte is headquartered in Mexico City, Mexico and reported MXN893
billion in assets (source: Comisión Nacional Bancaria y de
Valores), as of December 2015.
Nafin is headquartered in Mexico City, Mexico and reported MXN385
billion in assets (source: Comisión Nacional Bancaria y de
Valores, CNBV), as of December 2015.
REGULATORY DISLCOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain 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 certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain 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.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead analyst and the Moody's legal entity that has issued the ratings.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
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.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
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
M. Celina Vansetti
MD - Banking
Financial Institutions Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's reviews ratings of cross border debts issued by Mexican financial institutions
