Fitch puts GFNorte on negative watch

Fitch Ratings said it has placed most of Grupo Financiero Banorte, SAB de CV's (GFNorte) ratings on Rating Watch negative following the recent announcement of a binding agreement to merge with Grupo Financiero Interacciones, SAB de CV (GFInteracciones).

Fitch also said it placed the ratings of GFInteracciones subsidiaries Banco Interacciones, SA (Interacciones) and Interacciones Casa de Bolsa, SA de CV (Interacciones CB) on Rating Watch positive.

The negative watch reflects that the ratings could be downgraded or affirmed once Fitch completes a thorough review of the business and financial implications of the proposed merger, the agency explained.

The positive watch reflects an expectation that upon completion of the potential merger these ratings will likely be upgraded to the level of GFNorte's or those of its main operating subsidiary, Banco Mercantil del Norte, SA (Banorte), Fitch added.

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