Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers B > Headlines for Banco Mercantil del Norte SA (Banorte) > News item |
Moody’s downgrades Banorte BCA, debt
Moody's de México said it confirmed Banco Mercantil del Norte, SA's (Banorte) long-term global local and foreign currency A3 deposit ratings and Aaa.mx long-term Mexican national scale deposit ratings.
The global scale ratings carry a negative outlook.
At the same time, the agency downgraded Banorte's standalone baseline credit assessment (BCA) and adjusted BCA to baa2 from baa1, long-term subordinated medium-term note program rating one notch to provisional Baa3 and junior subordinated debt and medium-term note program ratings to Ba1 (hyb) and provisional Ba1, respectively.
Moody's also downgraded the subordinated and junior subordinated Mexican national scale debt ratings to Aa3.mx and A1.mx (hyb), respectively. The long- and short-term A2(cr)/Prime-1(cr) counterparty risk (CR) assessments were confirmed.
In addition, Moody's downgraded Arrendadora y Factor Banorte, SA's (AyF Banorte) issuer and senior debt ratings to Baa2 from Baa1 and to provisional Baa2 from provisional Baa1, respectively, as well as its national scale ratings to Aa2.mx from Aa1.mx. The outlook on AyF Banorte's ratings is stable.
Banorte, along with other Mexican banks, faces increased medium-term tail risks stemming from the country's less favorable environment predicated on a combination of the oil price shock and the lower than expected economic growth, the agency said.
The structural reforms adopted in 2013-14, which were expected to deliver a boost to economic activity, have not provided the anticipated benefit.
Moody's said it does not project an economic deceleration, but together these factors have undermined expectations for improved economic performance and shifted the balance of risks and opportunities for the country's banking sector to the downside.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.