S&P Global Ratings on June 5 affirmed CIBanco SA Institución de Banca Múltiple's long- and short-term counterparty national scale ratings of "mxA-" and "mxA-2," respectively.
The outlook remains stable.
CIBanco's ratings reflect S&P's favorable assessment of the bank's capital and earnings, which are based on a risk-adjusted capital ratio that is expected to average 8.7% over the next 2 years, thanks in part to a capital injection from ultimate parent Tenedora CI SA de C.V. S&P also forecasts the potential of strong internal capital generation will offset a growth in risk-weighted assets over the next 2 years.
The bank's ratings also reflect the bank's dependence of revenue in the currency exchange sector, which accounted for over 70% of total operating income as of March 2017. The bank's ratings are also constrained by its credit profile, which reflects a risk-adjusted capital index forecast at 6.2% over the next 2 years, which is lower than the banking level.
As of June 5, US$1 was equivalent to 18.36 Mexican pesos.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.