S&P Global Ratings on Jan. 16 assigned to Bank of China Mexico SA Institución de Banca Múltiple long- and short-term national scale issuer ratings of "mxAAA" and "mxA-1+," respectively, with a stable outlook.
Bank of China México is considered a highly strategic subsidiary for parent company Bank of China Ltd., S&P said. The rating agency also noted that the bank will continue to benefit from group support, funding, and future capital injections in case of higher-than expected growth.
S&P notes that since the China-based bank's Mexican operations has only started recently, it is still limited by its customer concentration, revenue and portfolio base.
The bank has a risk-adjusted capital ratio that is forecast at 17.5% on average for the next two years.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.