KEY RATING DRIVERS
The support rating affirmation of SAN Mexico at '2' reflects Fitch's view that there is high probability of support to SAN Mexico from SAN, if needed.
The withdrawal of SAN Mexico's SRF reflects Fitch's view that parent support, if needed, is now more likely than sovereign support, given the recent upgrade of its parent (Spain's Banco Santander (SAN), upgraded to 'A-' from 'BBB+' on
The previous SRF of SAN Mexico was assigned at a time when the parent was under considerable rating downward pressure due to Spain's sovereign rating. Therefore, Fitch assigned this SRF to indicate the level below which the agency would not lower the bank's IDRs due to the propensity of sovereign support, given the bank's systemic importance. Since the rating trend of the parent has reversed and Fitch now believes that parent support is more likely than sovereign support, Fitch considers that the sovereign-driven SRF is no longer relevant.
The support of SAN Mexico could be revised upward if the parent rating is further upgraded. On the other side, Fitch considers that there is limited downside potential for this rating, even in the event of a deterioration of the parent's capacity to provide support, since the sovereign would likely maintain a high probability of support in that event, due to SAN Mexico's high systemic importance.
The rating actions are as follows:
--Support Rating affirmed at '2';
--Support Rating Floor withdrawn at 'BBB-'.
Additional information is available on www.fitchratings.com
Applicable criteria and
--'Global Financial Institutions Rating Criteria' (
--'Rating FI Subsidiaries and Holding Companies' (
--'National Scale Ratings Criteria' (
National Scale Ratings Criteria
Rating FI Subsidiaries and Holding Companies
Global Financial Institutions Rating Criteria
+52 818 399 9150
Senior Director, CFA
+52 818 399 9146
Source: Fitch Ratings
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