Fitch ups IPAB long-term local rating to BBB+

Fitch Ratings said it upgraded the long-term local currency rating of Mexico's Instituto para la Proteccion al Ahorro Bancario (IPAB) to BBB+ from BBB following the upgrade of Mexico's sovereign rating.

The outlook is stable.

The rating is in line with the long-term local currency rating of the United Mexican States and reflects the legal framework for the fulfillment of its financial obligations, as well as its systemic importance to the Mexican financial sector in its character of deposit insurer, the agency said.

While IPAB's debt does not have a specific federal government guarantee, the Law for the Protection of Bank Savings says that if IPAB is not in a condition to face its financial obligations, the Mexican Congress will dictate the measures it deems convenient for the payment of the guaranteed obligations and financing of supported financial institutions, the agency said.

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