TEXT - S&P rates Banco Santander (Mexico)
Nov 5 - Standard & Poor's Ratings Services said today it assigned its 'BBB' long-term issue rating to Banco Santander (Mexico) S.A. Institucion de Banca Multiple Grupo Financiero Santander's (BBB/Stable/A-2) up to $1 billion senior unsecured notes. The notes will have a maturity of up to 10 years. "The rating on the bank's senior notes reflects its pari passu ranking to Banco Santander Mexico's other unsecured debt obligations, and as such it is the same as the bank's long-term issuer credit rating. The bank will use the proceeds to extend its funding profile--as it continues to expand its mortgage loan portfolio--and refinance upcoming market debt maturities in 2013," said Standard & Poor's credit analyst Arturo Sanchez. The amount of this issuance, along with the amount of debt that the bank will refinance with these proceeds, will keep refinancing risk very manageable. "We forecast the $1 billion senior notes will represent about 2% of the bank's total interest-bearing liabilities in 2013, and their up to 10 year maturity keeps a healthy debt maturity profile," added Mr. Sanchez. We expect market debt to remain at less than 5% of the bank's total funding base for the next 12 months. As a result of the recent downgrades of its Spain-based parent, Banco Santander S.A. (BBB/Negative/A-2), we will continue to closely monitor Banco Santander Mexico's dividend and liquidity policies, to address any aggressiveness that could weaken its stand-alone credit profile in terms of capital and earnings, and liquidity. The issuer credit ratings on Banco Santander Mexico reflect its "adequate" business position, "strong" capital and earnings, "adequate" risk position, and "average" funding with "adequate" liquidity (as our criteria defines them). For a complete credit rating rationale on Banco Santander Mexico, please see "Banco Santander (Mexico) S.A. Institucion de Banca Multiple Grupo Financiero Santander," published Oct. 24, 2012. RELATED CRITERIA AND RESEARCH -- Banks: Rating Methodology And Assumptions, Nov. 9, 2011 -- Banking Industry Country Risk Assessment Methodology And Assumptions, Nov. 9, 2011 -- Group Rating Methodology For Banks, Nov. 9, 2011 -- The Influence Of Asset Encumbrance On Our Bank Ratings, Sept. 6, 2012 -- Banco Santander (Mexico) S.A. Institucion de Banca Multiple Grupo Financiero Santander, Oct. 24, 2012 RATINGS LIST Banco Santander (Mexico) S.A. Institucion de Banca Multiple Grupo Financiero Santander Issuer credit rating BBB/Stable/A-2 Rating Assigned Banco Santander (Mexico) S.A. Institucion de Banca Multiple Grupo Financiero Santander $1B senior unsecured notes BBB
- Exclusive: Secret contract tied NSA and security industry pioneer |
- U.S. aircraft hit by gunfire in South Sudan as conflict worsens
- With Fed out of the way, what's next on Wall Street?
- Four men arrested in deadly N.J. shopping mall carjacking
- Analysis: Lost Brazil order raises threat to Boeing fighter jets