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Fitch affirms rating on Mexico's BIM, changes outlook to positive

Fitch Ratings on Jan. 26 affirmed Banco Inmobiliario Mexicano SA Institución de Banca Múltiple's financial credit asset manager rating at AAFC3-(mex) and changed its outlook to positive from stable.

According to Fitch, the outlook change considered recent improvements in the bank's financial performance and the relatively appropriate quality of its credit portfolio, as well as its management's experience and knowledge of its target market.

The rating agency also took into account the adverse economic environment that the company will face in the short and medium term, in addition to "the challenge of improving its financial condition, pressured tangible capital base and the diversification of its sources of funding."

In Fitch's opinion, the company's transformation into a banking institution specialized in the real estate sector is considered favorable because it is regulated by the Mexican banking and securities commission, the CNBV, which gives it access to new sources of funding.

Although the bank's loss-absorbing capacity is under pressure, Fitch noted that its mortgage guarantees partially mitigate its credit risk.