S&P Global Ratings on May 30 revised its outlook on Banco Ahorro Famsa SA Institución de Banca Múltiple to negative from stable, while affirming its B global scale and mxBBB-/mxA-3 national scale ratings.
The outlook change follows a similar action on Mexican retailer Grupo Famsa SAB. de C.V., which owns the bank. S&P said that Banco Ahorro Famsa's ratings reflect its "core" status to the company. The rating agency believes that Banco Ahorro Famsa's ratings will move in tandem with its parent.
The negative outlook also reflects S&P's view that Grupo Famsa's business and financial challenges, which are "due to a fierce competition and sluggish economic growth in Mexico," could put pressure on the company's margin and limit "its ability to further deleverage its capital structure."
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.