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S&P lifts long-term ratings on Invex, brokerage unit

S&P Global Ratings on Dec. 19 raised the long-term issuer credit ratings on Banco Invex SA Institución de Banca Múltiple INVEX Grupo Financiero and unit INVEX Casa de Bolsa SA de CV to 'mxAA-' from 'mxA+', citing the financial group's stable and growing business.

The rating agency also affirmed both entities' short-term ratings at 'mxA-1.' The outlook is stable.

"The increase in ratings reflects the adequate execution of the strategy of Banco Invex and the group that has derived in a long history of stability and growing revenues and business volumes, which has improved its credit quality in relation to other issuers on a national scale in Mexico," S&P wrote. "This has allowed the bank and the group to continue to differentiate themselves from other competitors with a more concentrated business profile and a more vulnerable income base in the face of adverse economic cycles."

S&P said its ratings incorporate the expectation that the bank will have a 7.7% risk-adjusted capital ratio over the next 12 to 24 months, among other factors. Its stable outlook, meanwhile, anticipates that the bank will continue to grow its loan portfolio at a faster pace than its Mexican peers while maintaining stable asset quality metrics.

"We also hope that the strategy (of the bank and group) will continue to lead to a stable income generation and a growing diversification of business lines," it added.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.