Mexico’s Interacciones Gets BB Rating

Fitch has assigned Banco Interacciones, a mid-size Mexican bank focused on lending to government-related entities and infrastructure projects, a BB issuer default rating and a with a stable outlook. Good financial performance, adequate track record on asset quality, improved risk management practices and a good franchise on public sector lending activities support the rating, the agency says. Factors that negatively impact the rating include a modest diversification of lending, high borrower concentration and funding sources, growing competition and acceptable capitalization. As of Q2 2010 it has a domestic market-share of 2.2% of total loans.