S&P changes 13 Mexican financials to stable

S&P said it revised the long-term global scale rating outlook on 13 Mexican financial institutions to stable from negative.

At the same time, the agency affirmed the global and national scale ratings and their issue-level ratings on their senior secured and unsecured debt, where applicable. The outlook on the national scale ratings also remained stable.

S&P took the actions on the following entities: Asigna, Compensacion y Liquidacion; Banco Inbursa SA Institucion de Banca Multiple Grupo Financiero Inbursa; Banco Mercantil del Norte SA Institucion de Banca Multiple Grupo Financiero Banorte; Banco Nacional de Comercio Exterior, SNC (Bancomext); Banco Nacional de Mexico, SA (Citibanamex);Banco Nacional de Obras y Servicios Publicos, SNC; BBVA Bancomer SA; Fondo Especial de Asistencia Tecnica y Garantia Para Creditos Agropecuarios (FEGA); HSBC Mexico, SA; Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Infonavit); Instituto Para La Proteccion al Ahorro Bancario; Nacional Financiera, SNC (Nafin); and Scotiabank Inverlat, SA.

S&P said the action follows the outlook revision on Mexico.

“The change in outlook reflects diminishing risk that the government's direct debt burden, combined with our future assessment of potential contingent liabilities (especially from nonfinancial public enterprises), could materially worsen our overall debt assessment over the next 24 months,” the agency said in a news release.

“We believe that the prompt reaction of Mexican government authorities to recent negative shocks, such as the depreciation of the currency in late 2016, will diminish the recently rapid pace of debt accumulation and help stabilize the government's debt burden.”

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