Fitch Affirms BBVA Bancomer at 'A' & Individual at 'B/C'; Outlook Remains Negative

MONTERREY, Mexico--(Business Wire)--
Fitch Ratings has affirmed the ratings of BBVA Bancomer. The Rating Outlook on
the long-term Issuer Default Ratings (IDRs) remains Negative. This was revised
from Stable in November 2008, following a similar action on Mexico's Sovereign
rating. National-scale ratings were affirmed at 'AAA(mex)' and 'F1+(mex)' with a
Stable Outlook.

Fitch affirms the following rating actions, with a Negative Outlook:

BBVA Bancomer:

--Long-term foreign currency IDR at 'A',;

--Short-term foreign currency IDR at 'F1';

--Long-term local currency IDR at 'A';

--Short-term local currency IDR at 'F1';

--Individual rating at 'B/C';

--Support rating affirmed at '1';

--USD500 million 6.008% non-cumulative fixed/floating rate subordinated
non-preferred notes due 2022, at 'A-';

--EUR600 million 4.799% cumulative fixed/floating rate subordinated preferred
notes due 2017, at 'A-';

--Long-term national-scale rating, at 'AAA(mex)', Stable Outlook;

--Short-term national-scale rating at 'F1+(mex)';

--National-scale rating for local senior debt issues at 'AAA(mex)';

--National-scale rating for local subordinated debt issues, at 'AAA(mex)'.

BBVA Bancomer's IDRs and support ratings reflect the very high probability of
support from its parent Banco Bilbao Vizcaya Argentaria (BBVA; IDR 'AA-',
Positive Outlook), if this were required. However, its IDRs also factor in the
operating environment and the fact that a potential sovereign downgrade could
affect these ratings (including the short-term IDRs). Nevertheless, should the
sovereign eventually be downgraded, a similar rating action on the bank's IDRs
could be prevented with a potential upgrade of the parent's IDR, which currently
carries a Positive Outlook. BBVA Bancomer's foreign currency subordinated debt
was affirmed at 'A-', one-notch below the bank's IDRs.

In turn, BBVA Bancomer's Individual rating reflects its sound performance,
robust franchise, better-than-peers' asset quality metrics and resilience to a
rapidly worsening environment, as well as its adequate funding and liquidity.
Downside factors include the relatively tighter capital levels and the potential
for further material asset quality deterioration. The Individual rating could be
downgraded if profitability and/or asset quality deteriorates beyond Fitch's
expectations, or if capital/liquidity tightens further.

Asset quality has gradually worsened (non-performing loans [NPLs] were 3.16% of
the total in fourth-quarter 2008), especially in credit cards (18% of total
loans; NPLs at 9.25%) and overall credit costs have also increased. While BBVA
Bancomer has contained this trend better than its peers, further asset quality
deterioration is expected, while somewhat high borrower concentrations and
rapidly growing restructured loans arising from debtor-relief programs (2.7% of
total loans) are additional sources of credit risk. Earnings have been
moderately affected by growing provisions, but profitability remains sound
underpinned by strong margins, ample fee revenues and robust operating
efficiency, although prospects continue to weaken. The bank's funding and
liquidity are sound. Capital ratios, which are lower than most peers and include
a high reliance on hybrids with medium-to-high equity credit, should remain
reasonable in view of the bank's risk profile.

BBVA Bancomer was Mexico's largest commercial bank at end-2008, with a market
share by assets, loans and deposits of 23.9%, 27.5% and 24.7%, respectively.
BBVA Bancomer is part of Grupo Financiero BBVA Bancomer, which is by far BBVA's
most important international operation, accounting for 39% of the group's
earnings in 2008. At end-2008, BBVA Bancomer had 1,862 branches and 5,814 ATMs,
which will likely continue to increase gradually.

Note: Fitch's National ratings provide a relative measure of creditworthiness
for rated entities in countries with relatively low international sovereign
ratings and where there is demand for such ratings. The best risk within a
country is rated 'AAA' and other credits are rated only relative to this risk.
National ratings are designed for use mainly by local investors in local markets
and are signified by the addition of an identifier for the country concerned,
such as 'AAA(mex)' for National ratings in Mexico. Specific letter grades are
not therefore internationally comparable.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, www.fitchratings.com. Published ratings, criteria and
methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, Monterrey, Mexico
Alejandro Garcia, CFA, +5281 8399-9146
Rene Ibarra, +5281 8399-9143
Peter Shaw, 212-908-0553, New York
or
Media Relations:
Brian Bertsch, 212-908-0549, New York
Email: brian.bertsch@fitchratings.com
Cindy Stoller, 212-908-0526, New York
Email: cindy.stoller@fitchratings.com

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