Mexico City (EFE) .- Moody’s Local Mexico said that the transfer by the Treasury of the Fiduciary Business of Cibanco and Intercam to development bank entities will substantially reduce the operational risks derived from the intervention of both financial institutions by authorities, after accusations of EU of incurring alleged money laundering.
According to the qualifier, this decision especially benefits structured finance emissions and credits backed by state and municipal governments, sectors where Cibanco has a preponderant role as a fiduciary.
In particular, it acts in 45% of structured emissions and in 60% of the subsoberan credits qualified by Moody’s, he detailed in a report published Monday.
Cibanco’s intervention was a consequence of the veto by the United States Department of the Treasury when considering it as a concern institution in money prevention.
Soser context: Treasury passes Fiduciary business of Cibanco and Intercam to Development Bank
Although the trusts have continued to operate normally and have fulfilled their obligations, Moody’s warned that uncertainty has persisted due to possible risks in their long -term legal continuity.
Since July 4, the Ministry of Finance announced the process to split the Cibanco fiduciary business, so it will temporarily transfer the fiduciary functions to development banks, while looking for a definitive solution with private institutions.
Intervention to Cibanco, Interm and Vector, to avoid any interruption to the banking system: SHCP
Moody’s said that several structured emissions have already begun processes to replace Cibanco as a trustee, and in the case of subsoberan loans, some emitters are evaluating similar options.
“We hope that the management intervention by the National Banking and Securities Commission (CNBV) and the transfer of the trustee business will help maintain a normal operation of the trusts during a transition period where most issuing issues will probably carry out trustee substitutions,” said the qualifier.
In addition, he stressed that most of the bank accounts of the emitting trust are in institutions other than Cibanco, which represents a key mitigant.
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In its portfolio, Moody’s reports that Cibanco participates as a trustee in 12 structured emissions (five of backed assets and seven mortgages) and in 88 subsoberan credits.
In the latter, the use of trusts to guarantee the payment of debt with federal resources allows to isolate risks of the original issuer and strengthens the credit structure, Moody’s explained.
HR ratings coincides: lower operational risk
For his part, HR Ratings also stressed that the split of the fiduciary business towards development bank guarantees the operational continuity of the trusts involved.
In his analysis, he pointed out that this measure allows to maintain the transactionality of various participants of the financial system, by reducing the risk of accessibility to resources in bank accounts linked to Cibanco and Interm.
HR Ratings currently monitors 66 financial participants with links to the fiduciary divisions of both institutions, including investment funds, structured debt instruments and fibers.
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With the transfer, an orderly redistribution of the trusts is expected, which would limit possible effects on operational overcapacity in other receiving entities.
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