Ratings roundup: Banamex, BCI's Mexican bonds, Bancolombia debt

Wednesday, July 20, 2011

S&P has affirmed Citi's (NYSE: C) Mexican unit Banamex, including its BBB/A-3 global scale and AAA/A-1+ national scale counterparty credit ratings. The outlook remained stable, the agency said in a report.

The ratings on Banamex reflect its leading position in Mexico's banking industry, and its above-average financial profile supported by strong risk-adjusted capital (RAC) ratios, good liquidity and improved asset quality.

Offsetting these positive rating factors are the volatility of earnings associated with market-related income, challenging economic conditions and strong competition, the report reads.

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To read the full report, go to this link


Fitch has assigned a AAA national scale rating to the 2bn pesos (US$170mn) issued by BCI in the Mexican bonds known as Cebures.

The ratings are based on BCI's improved capital base and the diversification of its funding sources over the last few years, the agency said in a report.

On July 15, the bank - Chile's fourth largest - issued the debt at 40 basis points above the local TIIE benchmark interbank interest rate. The issue is part of a larger 8bn-peso bond program.

To read the full report, in Spanish, go to this link


Fitch also affirmed Bancolombia's (NYSE: CIB) 600bn-peso (US$340mn) senior bonds at AAA on the national scale. The outlook is stable.

The rating reflects the bank's good competitive position, solid profit generation, broad customer and depositor base, and diversified loan portfolio and revenue sources.

The agency also took into consideration Bancolombia's good asset quality, high level of provisions and strong liquidity position.

To read the full report, go to this link