Fitch puts ING Bank Mexico on negative watch

Fitch Ratings said it placed the international and national-scale ratings of the ING Bank Mexico, SA on Rating Watch negative.

The negative watch is driven by the rapidly decreasing strategic importance of ING Mexico to its parent, ING Bank NV, Fitch said.

Mexico is no longer a strategic market for ING, the agency said, and the size of ING Mexico's balance sheet has rapidly decreased in the first and second quarters of 2012 as the bank has been focused on reducing the volume of trading activities, formerly a core business for ING Mexico.

While this shrinking strategy has resulted in some modest net losses in the first two quarters of 2012, the financial condition of ING Mexico has not deteriorated materially since the balance sheet as of June 2012 is smaller and mostly composed of relatively liquid assets and a high quality corporate loan portfolio, Fitch added.

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