Moody’s and Fitch rule out credit risk in Banamex after sale announcement – El Sol de México

After Citigroup announced that will sell Banamex through a Initial Public Offering (IPO)the rating agencies Moody’s y Fitch Ratings ruled out credit risks in the bank and ensured that will remain a leader within the sector.

“The qualifications of citibanamex they continue without change, being kept under review for possible discharge. Once the OPIthe business under the brand Banamex will no longer have the support of Citi and it will be a smaller bank without the big corporate business,” he said. Moody’s in a report.

You can read: Fitch rules out impact on Citi’s note from IPO to sell Banamex

For his part, Fitch Ratings specified that the IPO to sell Banamex will not have an immediate effect on its ratingbecause Citigroup, its US parent, will provide timely support if necessary.

“citibanamex has maintained its considerable market position in Mexico as the fourth largest Mexican bank by loans and the second largest by customer deposits,” Fitch mentioned in another analysis.

Yesterday, after a long period of negotiations that lasted more than a year, Citigroup decided to sell Banamex in an IPO in the stock market, without specifying the country where the operation will take place.

The announcement came after rumors that Mexico Group, of German Larrea and i was the only one company that was still in the bid for Banamex, withdrew from the process due to differences with the federal government over the seizure of roads by one of its companies.

The expectations of the institution headed by Jane Fraser are that the OPI can be carried out in the year 2025, once the separation of the operations of Citigroup y Banamexa process that may conclude in the second half of 2024.

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Until the end of March, citibanamex positioned itself as the fourth most important bank in Mexico in terms of credit cardaccording to official data from the institution.

“Once the IPO is done, Banamex will not be supported by Citigroup. However, we estimate that even though these risk factors exist, the new bank will still have significant strength, especially due to its high participation in Credit cards and its broad base of deposits”, he concluded Moody’s.