Fitch Affirms Banobras' IDR at 'BBB' and LC at 'BBB+'; Outlook Stable

MONTERREY, Mexico & NEW YORK--()--Fitch Ratings has affirmed the international and national-scale ratings of Mexican development bank Banco Nacional de Obras y Servicios Publicos (Banobras). A full list of rating actions follows at the end of this press release.

Banobras' ratings reflect the strength of the explicit support that the bank would receive from the Mexican government, if required. Under Banobras's organic law (article 11), the Mexican federal government is explicitly responsible for Banobras's liabilities with domestic or foreign institutions. Given Mexico's investment-grade rating, there is a high probability that support from the authorities would be forthcoming, if required.

Banobras' ratings will mirror any potential change in Mexico's sovereign ratings, which currently have a Stable Rating Outlook, given that the bank's Issuer Default Ratings (IDRs) are driven by the explicit support granted by the Mexican government.

Banobras, established in 1933, is mandated to promote and fund infrastructure, public services and regional development projects entered into by the federal, local governments and state-owned companies. Banobras has a well-recognized competitive advantage, particularly in long-term loans for subnationals and specialized infrastructure projects. Given that infrastructure will likely remain a core sector for macroeconomic policies, Fitch expects that Banobras' strategic importance will increase further in the following years.

Fitch has affirmed the following ratings:

Banco Nacional de Obras y Servicios Publicos, SNC:

--Long-term IDR at 'BBB';

--Short-term IDR at 'F2';

--Long-term local currency IDR at 'BBB+';

--Short-term local currency IDR at 'F2';

--Support rating at '2';

--Support rating floor at 'BBB';

--Long-term national-scale rating at 'AAA(mex)';

--Short-term national-scale rating at 'F1+ (mex)';

--Local senior unsecured debt issues at 'AAA(mex)';

The Rating Outlook is Stable.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

-- 'Global Financial Institutions Rating Criteri'a (Aug. 15, 2012);

--' National Ratings Criteria' (Jan. 19, 2011).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

National Ratings Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=595885

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Contacts

Fitch Ratings
Primary Analyst
Monica Ibarra, +52 81 8399 9150
Director
Fitch Mexico SA de CV
Prol. Alfonso Reyes 2612, Edificio Connexity Piso 8
Col. Del Paseo Residencial
64920 Monterrey, N.L., Mexico
or
Secondary Analyst
Alejandro Garcia, CFA, +52 81 8399 9146
Senior Director
or
Committee Chairperson
Pedro El Khaouli, +58 212 286 3356
Senior Director
or
Media Relations:
Peter Fitzpatrick, +44 20 3530 1103, London
Email: peter.fitzpatrick@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Monica Ibarra, +52 81 8399 9150
Director
Fitch Mexico SA de CV
Prol. Alfonso Reyes 2612, Edificio Connexity Piso 8
Col. Del Paseo Residencial
64920 Monterrey, N.L., Mexico
or
Secondary Analyst
Alejandro Garcia, CFA, +52 81 8399 9146
Senior Director
or
Committee Chairperson
Pedro El Khaouli, +58 212 286 3356
Senior Director
or
Media Relations:
Peter Fitzpatrick, +44 20 3530 1103, London
Email: peter.fitzpatrick@fitchratings.com