Banamex on Rating Watch Negative

Fitch has placed Banamex’s A rating on rating watch negative after having done the same with the Mexican bank’s parent company Citigroup. The potential downgrade of Citigroup’s IDRs to their unsupported level of BBB+ would likely affect Banamex’s IDRs negatively, the agency says. Fitch explains that Citigroup’s negative watch reflects its interpretation of a recent rule that says that under no circumstances should taxpayers ever be called upon to bail out systematically important financial institutions in the future.