Fitch: No Rating Implications For GFNorte & Subsidiaries USD$2.5B Capital Increase

Wed Jul 17, 2013 4:36pm EDT

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(The following statement was released by the rating agency) MONTERREY, July 17 (Fitch) 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. Contact: Primary Analyst Monica Ibarra Director +52 81 8399 9150 Fitch Mexico SA de CV Prol. Alfonso Reyes 2612, Edificio Connexity Piso 8 Col. Del Paseo Residencial 64920 Monterrey, N.L., Mexico Secondary Analyst Alejandro Garcia, CFA Senior Director +52 81 8399 9146 Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty@fitchratings.com. Additional information is available at www.fitchratings.com ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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 MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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