S&P Global Ratings on Jan. 31 moved its CreditWatch status on Investa Bank SA Institución de Banca Múltiple to negative from developing, pointing to the ongoing money laundering and tax evasion investigation by U.S. authorities into one of the bank's partners.
S&P had placed InvestaBank's ratings on CreditWatch with developing implications in October 2016 following the bank's announced acquisition of Deutsche Bank México SA Institución de Banca Múltiple and Deutsche Securities SA de CV Casa de Bolsa. It maintained that developing status the following month after the arrest of former InvestaBank partner Carlos Djemal.
However, in changing the CreditWatch status, S&P said that the investigation has resulted in a significant increase in past-due loans and lower turnover, as some of the funding lines are unavailable at present, which has significantly affected the generation of income.
Still, the rating agency affirmed InvestaBank's long- and short-term national scale ratings of mxBBB+ and mxA-2, respectively.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.