S&P Global Ratings on Dec. 22 affirmed the long and short-term ratings of Mexico's Banco Invex SA Institución de Banca Múltiple INVEX Grupo Financiero and brokerage firm INVEX Casa de Bolsa SA de CV at mxA+ and mxA-1, respectively. The outlook for the ratings is stable.
S&P also affirmed holding company INVEX Controladora SAB de CV's long and short-term ratings at mxA and mxA-2, respectively, with a stable outlook.
Banco Invex's ratings reflect its moderate market position, including low penetration in the Mexican banking system, despite having seen recent growth in loans and deposits, S&P said in its affirmation. However, the rating agency also noted that the bank has adequate capitalization levels and a conservative profit reinvestment policy that has supported the bank's loan growth in recent years.
The bank's asset quality is in line with the local banking system, and its liquidity is adequate although its funding is below average.
The stable outlook reflects S&P's expectation that Banco Invex will maintain its level of growth slightly above the system average, with stable metrics in terms of asset quality.
Invex Controladora's ratings reflect its status as a holding company with its main subsidiary as Banco Invex. S&P expects the flow of dividends from the subsidiaries and consolidated liquidity will be enough to service the company's debt obligations.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.