Fitch Expects to Rate BBVA Bancomer's Senior Debt Notes 'A-(EXP)'

Thu Apr 3, 2014 8:20pm EDT

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(The following statement was released by the rating agency) MONTERREY, April 03 (Fitch) Fitch Ratings has assigned an expected Long-Term rating of 'A-(EXP)' to BBVA Bancomer's USD750m fixed rate senior notes with a tenor of 10 years. The issue rating is aligned with BBVA Bancomer's Viability Rating (VR) of 'a-' and its Long-Term Issuer Default Rating (IDR) of 'A-'. KEY RATING DRIVERS The 'A-(EXP)' rating assigned to BBVA Bancomer's senior debt issuance is in line with the bank's VR, which reflects the bank's solid franchise and competitive position, its overall sound and consistent financial performance, strong margins, and robust funding and liquidity, given its leading systemic position. The bank's VR does not factor in any extraordinary support from its parent Banco Bilbao Vizcaya Argentaria (BBVA, BBB+/Stable), even though Fitch considers it to be a 'core' subsidiary. The VR does however take into account the bank's reasonable loss absorption capacity in the form of loan loss reserves and capital position, which stands at acceptable levels. RATING SENSITIVITIES These securities remain broadly sensitive to, and Fitch expects they will move in line with, any changes to the bank's IDR. BBVA Bancomer's Rating Sensitivities are discussed in the Rating Action Commentary entitled "Fitch Affirms BBVA Latam's Subsidiaries' Ratings", dated May 28, 2013 and available at www.fitchratings.com. The rating actions are as follows: BBVA Bancomer: USD750m Fixed Rate Senior Notes for up to 10 years rated 'A-(EXP)'. Contacts: 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 Committee Chairperson Franklin Santarelli Managing Director +1 212 908 0739 Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty@fitchratings.com. Applicable Criteria and Related Research: -- Global Financial Institutions Rating Criteria (Jan. 31, 2014). Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty@fitchratings.com. Additional information is available on www.fitchratings.com Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Additional Disclosure Solicitation Status here 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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