Fitch Affirms INFONAVIT's IDRs at 'BBB+'/'A-'; Outlook Stable

MONTERREY, Mexico--()--Fitch Ratings has affirmed the ratings for Instituto del Fondo Nacional de la Vivienda para los Trabajadores (INFONAVIT) as follows:

--Long-term foreign currency Issuer Default Rating (IDR) at 'BBB+';

--Long-term local currency IDR at 'A-';

--Short-term foreign and local currency IDRs at 'F2';

--Support rating at '2';

--Support rating floor at 'BBB+';

--National scale long-term rating at 'AAA(mex)';

--National scale short-term rating at 'F1+(mex)'.

The Rating Outlook is Stable.

IDRS AND NATIONAL SCALE RATINGS

KEY RATING DRIVERS

INFONAVIT's IDRs remain aligned with the sovereign's and reflect the high probability that the entity will receive support from Mexico's federal government if needed, although there is no explicit guarantee. The ratings also consider the high importance of INFONAVIT as the main mortgage lender in Mexico.

RATING SENSITIVITIES

Any movements on the sovereign rating, which currently has a Stable Outlook, would trigger changes to INFONAVIT's IDRs. INFONAVIT's ratings could change (reflecting its intrinsic financial profile) if Fitch perceives a decrease in its strategic importance to the federal government. In Fitch's view, this scenario could take place only over the medium term, once the housing deficit in Mexico is fulfilled.

SUPPORT AND SUPPORT RATING FLOOR

KEY RATING DRIVERS

Fitch affirmed INFONAVIT's Support rating and Support rating floor at '2' and 'BBB+', respectively, given the entity's role in Mexico. Fitch's support rating floors indicate a level below which the agency will not lower the entity's long-term IDRs as long as the assessment of the support factors does not change.

RATING SENSITIVITIES

A potential upgrade or downgrade of INFONAVIT's Support rating and Support rating floor would be driven by a change in Mexico's sovereign rating and/or a change in the expected propensity of support from the Mexican government.

CREDIT PROFILE

INFONAVIT was created by the Mexican government in 1972, as an autonomous entity with fiscal authorities focusing to provide housing solutions specially to low income workers in the private sector. The institute is also part of the National Pension Fund System (SAR) since 1992.

As of December 2013, INFONAVIT's gross loan portfolio amounted MXN 917,790.7 million (USD 70,186.3 million), and it was integrated for 4.2 million of loans.

Additional information is available on www.fitchratings.com

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Jan. 31, 2014);

--'National Ratings Criteria' (Oct. 30, 2013).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732397

National Scale Ratings Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720082

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=829481

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Contacts

Fitch Ratings
Primary Analyst
Gilda de la Garza, +52 818 399 9160
Associate Director
Fitch Mexico S.A. de C.V.
Prol. Alfonso Reyes 2612
64920 Monterrey, Mexico
or
Secondary Analyst
Alejandro Garcia, CFA, +52 818 399 9146
Senior Director
or
Committee Chairperson
Franklin Santarelli, +1 212-908-0739
Managing Director
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Gilda de la Garza, +52 818 399 9160
Associate Director
Fitch Mexico S.A. de C.V.
Prol. Alfonso Reyes 2612
64920 Monterrey, Mexico
or
Secondary Analyst
Alejandro Garcia, CFA, +52 818 399 9146
Senior Director
or
Committee Chairperson
Franklin Santarelli, +1 212-908-0739
Managing Director
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com