NEW YORK & MONTERREY, Mexico--(BUSINESS WIRE)--As a result of a similar action taken at its parent company, Fitch Ratings has placed BBVA Bancomer's (Bancomer) local currency (LC) long-term Issuer Default Rating (IDR) of 'A' on Rating Watch Negative, as well as the global and local ratings of its hybrid securities, currently rated at 'BBB+' and 'AAA(mex)', respectively. Other of Bancomer's international ratings were affirmed as detailed in the list of rating actions at the end of this commentary, as well as the 'AAA(mex)' and 'F1+(mex)' national scale ratings, with a long-term Stable Outlook.
Bancomer's support and IDRs are driven by the potential support that the bank would receive from its ultimate parent, Spain's Banco Bilbao Vizcaya Argentaria SA (BBVA; long-term IDR of 'A+' on Rating Watch Negative by Fitch, if this were required. (See Fitch's commentary 'Fitch Places 8 Spanish Banks on RWN Following Sovereign Action' dated Dec. 20, 2011 and available at www.fitchratings.com). In Fitch's opinion, the probability of support from its parent would be very high, given Bancomer's significant contribution to BBVA's global franchise. These ratings will likely remain driven by sovereign and/or country ceiling considerations and any potential changes in the parent's ratings, although the downside potential in the unlikely event of a multi-notch downgrade is limited to Bancomer's viability rating, currently at 'a-'.
The placement of Bancomer's hybrids on Negative Watch reflect Fitch's view that these securities could be potentially affected by a downgrade of BBVA's viability rating, currently at 'a+' and recently placed on Rating Watch Negative, which is the anchor rating for determining the ratings of Bancomer's hybrids, given institutional support considerations. These securities were not affected by the recent introduction of the new rating criteria for such securities (see Fitch's criteria entitled 'Rating Bank Regulatory Capital and Similar Securities', dated Dec. 15, 2011 and available at www.fitchratings.com), but a potential downgrade of BBVA's viability rating, coupled with a wider notching for the hybrid securities, could result in a downgrade of Bancomer's global and national scale ratings of such hybrids.
For further information on Bancomer's viability rating, please refer to Fitch's commentary 'Fitch Affirms BBVA Bancomer's Ratings', dated Aug. 15, 2011 and available at www.fitchratings.com.
Fitch placed the following ratings on Negative Watch:
BBVA Bancomer:
--Long-term local currency IDR at 'A';
--Long-term rating of global subordinated debt issues at 'BBB+';
--Long-term national-scale rating for local subordinated debt issues at 'AAA(mex)'.
The following ratings were affirmed:
BBVA Bancomer:
--Long-term IDR at 'A-'; Outlook Stable;
--Short-term IDR at 'F1';
--Short-term local currency IDR at 'F1';
--Long-term rating of global senior unsecured debt issues at 'A-';
--Viability rating at 'a-';
--Individual rating at 'B/C';
--Support rating at '1';
--Long-term national-scale rating at 'AAA(mex)'; Outlook Stable;
--Short-term national-scale rating at 'F1+(mex)';
--Long-term national-scale rating for local senior unsecured debt issues at 'AAA(mex)';
--Long-term national-scale rating for local issues of market linked securities at 'AAA(emr)(mex)'.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Financial Institutions Rating Criteria', Aug. 16, 2011.
--'Rating Bank Regulatory Capital and Similar Securities', Dec. 15, 2011.
--'National Ratings Criteria', Jan. 19, 2011.
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171
Rating Bank Regulatory Capital and Similar Securities
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=656371
National Ratings Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=595885
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