Fitch: Ixe view negative

Fitch Ratings said it affirmed Ixe Banco, SA's BB long-term foreign- and local-currency issuer default ratings and revised the outlook to negative from stable.

Also affirmed are the short-term foreign- and local-currency ratings at B, individual rating at C/D, support rating at 5, support no floor, $120 million junior subordinated perpetual securities at B+, long-term national-scale rating at A(mex) and short-term national-scale rating at F1(mex).

The outlook reflects continued pressure on the bank's profitability and its gradually declining loss absorption capacity, according to Fitch.

Ratings reflect weak operating performance amid an aggressive branch expansion strategy, gradually declining loss absorption capacity and significant risk in its predominantly corporate loan portfolio, the agency said.

Ratings also consider strong loan growth, sound liquidity, low delinquency, adequate capitalization and gradually strengthening franchise, Fitch noted.

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