Fitch Ratings lowered the qualifications of the Intercam and Cibanco banks, as well as the Vector Bolsa House after the US signs on alleged money laundering linked to drug trafficking.
The agency reported that the cut in credit risk notes reflects the imminent negative impact on the business and financial profiles of financial entities, given the indication of the Treasury regarding potential weaknesses in matters of money laundering prevention in relation to illicit opioid traffic.
“The new qualifications reflect the significantly more vulnerable credit profile of these entities in the face of the aforementioned accusations, given the potential impact on the ability of these institutions to fulfill their financial obligations,” he said.
Fitch Ratings lowered the long-term risk rating of Intercam A ‘B’ from ‘AA-‘, and the short one to ‘b’ from ‘F1+’.
Cibanco’s long -term note was degraded to ‘B’ from ‘A’ and the short one to ‘b’ from ‘F1+’.
The long-term rating of Vector Casa de Bolsa fell to ‘B’ from ‘AA-‘ and the short one to ‘b’ from ‘F1+’.
Fitch added that all grades were placed under negative observation, which warns of applying another cut.
LEE: Intervention to Cibanco, Interm and Vector, to avoid any interruption to the banking system: SHCP
He explained that the negative observation on the qualifications reflects the uncertainty regarding the magnitude of a greater negative impact on the credit profiles of organizations, the possibility that new regulatory actions are adopted and the risk derived from the emergence of new events that could affect the sustainability of their businesses.
“Fitch hopes to resolve the ON (negative observation) as soon as there is greater clarity about regulatory actions and their implications for the credit profile and the ability to fulfill the obligations of financial institutions,” he said.
He explained that the national and short -term national grades of all the affiliates of the Intercam Bolsa Bolsa Bancos Bank, Intercam Financiero, CI Casa de Bolsa, and Finanmadrid Mexico also lowered and were placed under negative observation.
Fitch added that the casualties also include the announcement of the National Banking and Securities Commission on the temporal management intervention of the indicated organizations, and the replacement of the administrative and legal representatives, given the implications that in these entities may have the measures of the Department of the Treasury.
Yesterday the HR ratings rating agency degraded Cibanco and Intercam qualifications.
Lee: HR Ratings cuts Cibanco and Interm qualifications
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