Rating Action: Moody’s places all ratings and assessments of Citibanamex on review for downgradeGlobal Credit Research – 16 Jan 2022Mexico, January 16, 2022 — Moody’s de México (“Moody’s”) has today placed on review for downgrade the Baa1 deposit ratings, baa1 Baseline Credit Assessment (BCA) and Aaa.mx long-term Mexican National deposit rating assigned to Banco Nacional de México, S.A. (Citibanamex).
Moody’s also placed on review for downgrading all other ratings and assessments, except the bank’s short-term Mexican National Scale deposit rating of MX-1.In the same rating action, Moody’s placed on review for downgrade Citibanamex Casa de Bolsa, S.A. de C.V.’s long-term global local currency issuer rating of Baa1 and long-term Mexican National Scale issuer rating of Aa1.mx. Moody’s affirmed the brokerage house’s short-term Mexican National Scale issuer rating of MX-1.
The review for downgrade is triggered by Citigroup Inc.’s (A3 stable) announcement, released on 11 January 2022, that it will sell its consumer segments in Mexico, as well as its small and middle-market businesses in Mexico.
Citigroup will retain ownership of Citibanamex’s Institutional Clients Group (ICG) and its private bank, as well as its local brokerage house, Citibanamex Casa de Bolsa. As of November 2021, Citibanamex was the third-largest bank in Mexico with 12.9% of the system’s deposits and second-largest in consumer loans with 15.8% the market, as well as the fourth-largest in commercial loans with an 9.2% market share.
This exit from consumer banking is part of Citigroup’s global strategy to refocus its international activities. The structure of the sale of its Mexican consumer banking operations entails uncertainties, which are considered in this review.