S&PGlobal Ratings on Sept. 27 affirmed the long- and short-term national ratings ofBanco Inmobiliario Mexicano SAat mxBBB- and mxA-3, respectively.
The outlookfor the ratings is stable.
The ratingsreflect S&P's opinion that the bank's business position is weak due to the concentrationof its income in bridge loans and mortgages, as well as its relatively low marketpenetration within the Mexican banking system.
The bank'scapitalization remains moderate thanks to recent capital injections and moderategrowth in its loan portfolio, S&P said. Going forward, its risk-adjusted capitalratio is expected to be around 5.32% in the next two years.
However,the ratings also consider the bank's weak risk position due to the high level ofits unproductive assets and low reserves coverage compared to the rest of Mexico'sbanking industry, which have negatively affected its profitability, according tothe rating agency.
BancoInmobiliario Mexicano's funding is also lower than average to the high concentrationof its funding sources and moderate liquidity, S&P noted.
S&P Global Ratings and S&PGlobal Market Intelligence are owned by S&P Global Inc.