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Banking Industry Country Risk Assessment: Mexico Jan 12
Standard & Poors, Jan 2012
Abstract
Low private-sector debt to GDP ratio; Stable asset prices for the past four years and low exposure to real estate and equity prices; Banks' profitability restrains risk appetite; A stable market; Absence of market distortions; and Despite core deposits being the main funding source, the domestic debt market is providing alternative funding sources and supporting asset liability management. Low GDP per capita and Mexico's economy closely tied to the U.S.'s, although private-sector leverage is low; The majority of population has low income levels and poor saving capacity; and The creditor's ability to recover collateral and guarantee execution still needs to improve. We have reviewed the banking sector of Mexico (BBB/Stable/A-3) under our updated Banking Industry Country Risk Assessment (BICRA) methodology....
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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