Fitch Ratings on Aug. 9 affirmed the ratings of several Mexican financial institutions and their related entities while revising the outlooks of the long-term ratings to stable from negative.
The review included financial institutions with issuer default ratings or viability ratings that are at or above the sovereign level as well as one notch below the sovereign rating.
The outlook revisions were grouped into three categories by Fitch. The entities whose ratings were driven by explicit support or implicit support from the sovereign, where the federal government is the shareholder and the source of any potential support include:
* Banco Nacional de Comercio Exterior S.N.C. Institución de Banca de Desarrollo
* Banco Nacional de Obras y Servicios Públicos S.N.C
* Nacional Financiera S.N.C. Institución de Banca de Desarrollo
* Instituto del Fondo Nacional de la Vivienda para los Trabajadores, and
* Instituto para la Proteccion al Ahorro Bancario.
The entities with international ratings at or close to the sovereign rating and driven by their stand-alone credit profiles as reflected by their viability ratings, and therefore relatively sensitive to sovereign ratings movements or the performance of the operating environment include:
* Grupo Financiero Banorte SAB de CV
* Banco Mercantil del Norte SA Institución de Banca Múltiple
* Banco Inbursa SA Institución de Banca Múltiple Grupo Financiero Inbursa, and
* Banco Compartamos SA Institución de Banca Múltiple.
Grupo Financiero Santander Mexico SAB de CV and Banco Santander (México) SA Institución de Banca Múltiple were part of this group but the outlooks of their long-term ratings were already at stable, which Fitch maintained.
Lastly, banks with issuer default ratings driven by institutional support at or above the sovereign level or where the issuer default ratings are driven by a viability rating that is above the sovereign rating include:
* HSBC México SA Institución de Banca Múltiple Grupo Financiero HSBC
* Banco Nacional de México SA Integrante del Grupo Financiero Banamex, and
* BBVA Bancomer SA Institución de Banca Múltiple Grupo Financiero BBVA Bancomer.
The ratings of all these financial institutions are sensitive to changes in Mexico's sovereign rating on the down side, Fitch said. Therefore, their outlook revision to stable from negative followed the same action on Mexico's issuer default ratings.
Meanwhile, Fitch affirmed the ratings of the following related subsidiaries while keeping their outlook at stable:
* HSBC Casa de Bolsa SA de CV
* Arrendadora y Factor Banorte SA de CV SOFOM ER Grupo Financiero Banorte
* Almacenadora Banorte SA de CV Organizacion Auxiliar de Credito, Grupo Financiero Banorte
* Casa de Bolsa Banorte Ixe SA de C.V. Grupo Financiero Banorte
* SOFOM Inbursa SA de CV SOFOM ER Grupo Financiero Inbursa
* Casa de Bolsa BBVA Bancomer SA de CV
* Facileasing SA de CV
* Santander Consumo SA de C.V
* Casa de Bolsa Santander SA de CV
* Acciones y Valores Banamex SA de C.V. Integrante del Grupo Financiero Banamex, and
* Tarjetas Banamex SA de CV SOFOM ER.
The ratings of the banking institutions have a limited upside potential, Fitch said.