MONTERREY, Mexico--(BUSINESS WIRE)--Grupo Financiero Banorte, S.A.B. de C.V.'s (GFNorte; rated 'BBB'/'F2' with a Stable Outlook by Fitch) recent capital increase is viewed as a positive action, according to Fitch Ratings.
GNorte has raised USD$2.5 billion in a public offering of shares. This event is in line with Fitch's previously disclosed assumptions and expectations, and has no impact on the ratings of GFNorte and/or its subsidiaries.
The new capital will strengthen GFnorte's capitalization level and will allow GFNorte to afford the acquisition of Generali's stakes in order to purchase the International Finance Corporation's small stake in GFNorte's major subsidiary, Banco Mercantil del Norte, S.A. (Banorte; rated 'BBB'/'F2'with a Stale Outlook), and also liquidate the credit facility contracted earlier this year to complete the purchase of Afore Bancomer.
Also the new capital will bring Banorte's Fitch Core Capital (FCC) Ratio to 17%, and will also pay off the temporarily acquired debt at the holding level and virtually eliminate GFNorte's double leverage. The FCC remains consistent with Fitch's projections.
For further information on GFnorte & Subs' ratings, please refer to Fitch's rating action commentary entitled 'Fitch Affirms GFNorte & Subs at 'BBB'/'AA+(mex)'; Outlook Stable; Takes Various Actions on Subs' dated March. 22, 2013.
Additional information is available at www.fitchratings.com
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