Fitch Ratings on Sept. 7 revised the ratings outlook on Consubanco SA Institución de Banca Múltiple to stable from negative while affirming the bank's ratings.
The affirmed ratings include the bank's BB- long-term and B short-term foreign and local currency issuer default ratings, A-(mex) long-term and F2(mex) short-term national scale ratings and "bb-" viability ratings.
The outlook revision reflects Consubanco's stronger liquidity risk management, which has led to less cash flow pressures and significantly reduced asset-liability tenor gaps. The stable outlook also takes into account an expected sustainable improvement in the bank's profitability in the first half of 2018.
Meanwhile, the bank's issuer default and national scale ratings reflect its viability rating, which in turn considers its small franchise and low market share in the financial market. The viability rating also factors in the bank's relatively stable loan portfolio quality and reasonable profitability despite lagging behind its peers.
Other rating constraints include the bank's continued reliance on wholesale funding, relatively low Fitch-adjusted capitalization metrics and operational and political risks in its sector.