Moody’s applies A3 to Bancomext debt

Moody's Investors Service said it assigned a provisional A3 long-term foreign currency debt rating to Banco Nacional de Comercio Exterior, SNC, Institucion de Banca de Desarrollo's (Bancomext) proposed senior debt issuance for an amount to be determined with a maturity of up to 10 years to be issued through the bank's Cayman Islands branch, Banco Nacional de Comercio Exterior, SNC.

The outlook is stable.

Moody’s said the rating is based on the explicit support of the Mexican government (A3 stable) through an irrevocable and unconditional guarantee covering all obligations contracted by the bank with third parties.

While there is no direct guarantee from the government to Bancomext's bondholders, the guarantee is enshrined in Article 10 of Bancomext's Organic Law. The organic law that established the bank can only be changed by an act of congress. The guarantee is only enforceable in Mexico and only benefits Mexican individuals and companies and foreign institutions, either private, governmental or intergovernmental, and excludes non-Mexican individuals.

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