Fitch Ratings Maintains Banamex’s Credit Score
Fitch Ratings announced on Monday that Banamex’s credit ratings remain unchanged following the recent news of Mexican entrepreneur Fernando Chico Pardo’s purchase of 25% of the bank’s shares. The deal, which is still subject to regulatory approval, is expected to close in the second half of 2026.
Citi to Continue Supporting Banamex
Fitch explained that Citi is expected to remain the majority shareholder, holding 75% of Banamex’s ordinary shares. As a result, Citi will continue to support the bank if needed, as it will still largely own the institution.
“This is reflected in Banamex’s shareholder support rating of ‘bbb+’, which is two notches below Citi’s rating and considers the bank’s reduced strategic role for its parent company,” Fitch stated.
Fitch also highlighted that Citi continues to prepare the planned initial public offering (IPO) for Banamex, which depends on regulatory approvals and market conditions. This is part of Citi’s plans to divest from its retail banking businesses.
“The potential reduction, over the medium term, in Banamex’s strategic importance to Citi is reflected in the negative outlook on the bank’s international credit rating,” Fitch argued.
Strong Market Position
Fitch added that after the separation of Citi’s corporate and institutional businesses, Banamex displays a solid individual credit profile reflected in its viability rating of ‘bbb-‘.
The agency mentioned that Banamex has a robust market position in retail banking, consumer lending, and sight deposits, along with strong business growth.
However, it noted that the bank faces downside risks to its business and operational strategies over the medium term due to execution and consolidation challenges.
Fitch reminded readers that on September 24, Citi announced that a company owned by Fernando Chico Pardo and his family agreed to acquire 25% of Banamex for an estimated sale price of $2.3 billion at the time of the agreement.
The transaction is subject to Mexican regulatory approval and is expected to close in the second half of 2026.
Key Questions and Answers
- Q: Who is Fernando Chico Pardo, and why is his purchase of Banamex’s shares relevant?
A: Fernando Chico Pardo is a prominent Mexican entrepreneur. His purchase of 25% of Banamex’s shares is significant because it represents a substantial investment in one of Mexico’s leading financial institutions and indicates potential changes in the bank’s strategic direction.
- Q: How will Citi’s role in Banamex be affected by this transaction?
A: Citi will continue to be the majority shareholder, owning 75% of Banamex’s ordinary shares. This means Citi will still play a crucial role in supporting the bank, should it be necessary.
- Q: What does Fitch’s rating outlook of ‘negative’ for Banamex imply?
A: The negative outlook suggests that Fitch anticipates a potential downgrade in Banamex’s credit rating over the medium term, mainly due to the reduced strategic importance of Banamex for its parent company, Citi.
- Q: What is the significance of Banamex’s strong market position?
A: Banamex’s robust market position in retail banking, consumer lending, and sight deposits highlights its solid financial foundation. This strength, combined with strong business growth, supports the bank’s creditworthiness.
- Q: What challenges does Banamex face in the medium term?
A: Despite its strong market position, Banamex faces downside risks to its business and operational strategies over the medium term. These challenges include execution and consolidation difficulties that could potentially impact its strategic importance to Citi.
