Moody’s: Bancomext debt A3/Aaa.mx

Moody's de Mexico said it assigned A3 and Aaa.mx long-term global local currency and Mexican national scale senior unsecured debt ratings to two issuances of Certificados Bursátiles de Banca de Desarrollo (Bacmext 17 and Bacmext 17-2) of Banco Nacional de Comercio Exterior, SNC Institucion de Banca de Desarrollo (Bancomext).

The outlook is negative.

Both issuances will be placed in the domestic market. Bacmext 17 will have a maturity of three years and a variable coupon referenced to the 28-day interbank interest rate (28 TIIE) and Bacmext 17-2 will have a maturity of seven years and a fixed coupon referenced to a Mexican government bond with a 2024 maturity (MBond 2024).

The two issuances will not exceed an amount of Ps. 7 billion, with the mix dependent on investor demand.

Moody’s said the A3 senior debt rating reflects its assessment of the very high likelihood that the Mexican government (A3 negative) will provide extraordinary financial support to the institution if Bancomext finds itself facing financial stress. This assessment provides six notches of uplift from Bancomext's ba3 standalone baseline credit assessment.

The negative outlook reflects the current negative outlook on the Mexican sovereign bond rating, the agency added.

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