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Fitch upgrades Mexico's Banca Mifel's ratings

Fitch Ratings on May 15 upgraded Banca Mifel SA Institución de Banca Múltiple Grupo Financiero Mifel's long-term foreign and local-currency issuer default ratings to BB+ from BB and its viability rating to bb+ from bb.

Fitch also upgraded the long-term national scale rating to A+(mex) from A(mex) and its subordinated debt to BB- from B+. Meanwhile, the rating agency affirmed Mifel's short-term foreign and local currency ratings at B.

The outlook is stable.

The rating agency said the upgrades are due to the bank's "sound financial performance and proven business model through the economic cycle." It also noted that Mifel has improved its performance on a "material and sustained basis."

The bank demonstrated capacity to increase its business volume in both credits and deposits, while maintaining "reasonable" capitalization levels and "controlled" delinquency ratios, despite the accelerated growth of its loan portfolio, Fitch noted.

"Mifel's growing deposit franchise sourced in its branch network from strong customer relationships supports its sound funding and liquidity profile. Mifel's deposits have grown at a stable pace and account for 49% of its total funding," Fitch said.