trending Market Intelligence /marketintelligence/en/news-insights/trending/v3j4uny6pag83hb2sqdoxw2 content esgSubNav
In This List

Moody's revises outlook on Casa de Bolsa Santander to stable

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Moody's revises outlook on Casa de Bolsa Santander to stable

Moody's on May 30 changed its outlook on Casa de Bolsa Santander SA de CV to stable from negative, saying that downward pressures on parent company Banco Santander (México) SA's intrinsic credit strength have subsided.

At the same time, Moody's affirmed all of its ratings and assessments on Banco Santander México, including its long-term global local currency deposit rating at A3, long-term Mexican national scale deposit rating at Aaa.mx and baseline credit assessment at "baa2."

Moody's also affirmed all of Casa de Bolsa Santander's ratings, including the brokerage house's long-term global local currency issuer rating at Baa1.

The affirmation of Santander México's ratings reflects recent improvements in the bank's capital and profitability, as well as its stable asset quality and funding structure. The ratings also consider the rating agency's assessment of a very high willingness from the government to support the bank if needed.

"Profitability continues to benefit from the bank's efficient operations and its operating costs are the lowest of Mexico's large banks," Moody's said, adding that the bank's management expects recent investments aimed at improving its retail funding franchise to help bring down its funding costs.

Casa de Bolsa Santander, meanwhile, is highly integrated and harmonized with Banco Santander, which would likely lend its full support to the affiliate if needed, Moody's said.