Fitch Ratings on Oct. 11 upgraded Mexico-based Banco Base SA and Intercam Banco SA's long-term national ratings to A(mex) from A-(mex).

The rating agency also raised the banks' short-term national ratings to F1(mex) from F2(mex). The outlook for the long-term ratings for both banks is stable.

The upgrade of Banco Base's ratings reflects the growth in the bank's turnover, accompanied by a gradual and moderate diversification of its sources of income and the maintenance of its competitive position in the foreign exchange segment. The bank has also maintained a stable financial profile, good capital position and adequate profitability indicators. The upgrade also considers the increase in the bank's deposit collection base, the rating agency noted.

Meanwhile, Intercam Banco's upgrade is due to the strengthening of the bank's franchise, along with an improvement in its business model and a financial profile with good profitability indicators for its business segment, among other factors. These relatively mitigate its business model that focuses on currency intermediation and its relatively higher risk appetite in the form of accelerated growth in its loan portfolio, Fitch said.

In addition, Fitch performed the same ratings action on the banks' related brokerages, Casa de Bolsa BASE SA de CV Grupo Financiero BASE and Intercam Casa de Bolsa SA de CV Intercam Grupo Financiero.