Fitch: Peer Review For Mexican Government Related Financial Institutions

MONTERREY, Mexico--()--Fitch Ratings held a peer review for the international and national scale ratings of 10 government related financial institutions in Mexico. The rating actions are listed at the end of this commentary.

The ratings of Nafin, Bancomext, Banobras, SHF and Banjercito, reflect the high probability that these banks would receive support from the Mexican federal government if needed, according to an explicit guarantee stated in their respective organic laws. The Issuer Default Ratings (IDRs) of Nafin, Bancomext and Banobras are aligned with the sovereign ratings, while the highest national scale ratings of all of them are explained by the aforementioned guarantee.

The ratings of Infonavit, IPAB, Infonacot and FEFA; reflect the implicit sovereign support on behalf of the federal government these entities would receive if required, given the key role each entity has in the local financial sector and their high importance for the government's policies and social development goals. Although these institutes are not explicitly guaranteed by the Mexican federal government, Fitch considers that the propensity of the sovereign to provide support is strong.

The ratings of Fifomi reflect the reasonable propensity from the sovereign to provide support if required. The strategic importance of Fifomi for the sovereign is limited in relation to other government financial entities, given its lower systemic relevance. The federal government do not explicitly guarantees Fifomi, which limits its propensity to provide support if needed.

For further details on the particular key rating factors and rating sensitivities of each of these entities, as well as for regulatory information, please view individual rating action commentaries, published today and available in Fitch's websites at www.fitchratings.com and www.fitchratings.mx.

The international and national ratings affirmed as part of this peer review are the following:

Nacional Financiera, S.N.C. (Nafin):

--Long-term foreign currency 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)';

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

Banco Nacional de Comercio Exterior, S.N.C. (Bancomext):

--Long-term foreign currency 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)';

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

Banco Nacional de Obras y Servicios Publicos, S.N.C. (Banobras):

--Long-term foreign currency 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)';

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

Instituto para la Proteccion al Ahorro Bancario (IPAB):

--Long-term foreign currency 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)';

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

Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Infonavit):

--Long-term foreign currency 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)'.

Instituto del Fondo Nacional para el Consumo de los Trabajadores (Infonacot):

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

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

--Long-term local senior unsecured debt issues at 'AAA(mex)';

--Short-term local senior unsecured debt issues at 'F1+(mex)'.

Sociedad Hipotecaria Federal (SHF):

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

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

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

Banco Nacional del Ejercito, Fuerza Aerea y Armada, S.N.C. (Banjercito):

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

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

Fondo Especial para Financiamientos Agropecuarios (FEFA):

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

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

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

The national ratings upgraded as part of this peer review are the following:

Fideicomiso de Fomento Minero (Fifomi)

--National scale long-term rating upgraded to 'AA(mex)' from 'A+(mex)';

--National scale short-term rating upgraded to 'F1+(mex)' from F1(mex)';

--Long-term local senior unsecured debt issuances program upgraded to 'AA(mex)' from 'A+(mex)'.

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

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Contacts

Fitch Ratings
Monica Ibarra, +52 81 8399 9150
Director
Fitch Mexico, S.A. de C.V.
Prol. Alfonso Reyes 2612
Monterrey, N.L. Mexico
or
Bertha Perez, +52 81 8399 9161
Associate Director
or
Gilda de la Garza, +52 81 8399 9160
Associate Director
or
Angel Maass, +52 81 8399 9148
Associate Director
or
Alba Zavala, +52 81 8399 9137
Analyst
or
Manuel Valdes, +52 81 8399 9157
Analyst
or
Media Relations, New York
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com

Sharing

Contacts

Fitch Ratings
Monica Ibarra, +52 81 8399 9150
Director
Fitch Mexico, S.A. de C.V.
Prol. Alfonso Reyes 2612
Monterrey, N.L. Mexico
or
Bertha Perez, +52 81 8399 9161
Associate Director
or
Gilda de la Garza, +52 81 8399 9160
Associate Director
or
Angel Maass, +52 81 8399 9148
Associate Director
or
Alba Zavala, +52 81 8399 9137
Analyst
or
Manuel Valdes, +52 81 8399 9157
Analyst
or
Media Relations, New York
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com