Banco Nacional de Mexico's Ratings Affirmed By Fitch

Business Wire, Dec 7, 2001

Business Editors

NEW YORK--(BUSINESS WIRE)--December 7, 2001

Fitch, the international rating agency, has affirmed Banco Nacional de Mexico's (Banamex) foreign currency Short-term 'B', Long-term 'BB ' (Rating Outlook Positive), local currency Short-term 'F2', Long-term 'BBB', Individual 'C' and Support '3T' ratings. Banamex's ratings are based on its predominant position within the country's financial system, its significant deposit market share and the potential support it would receive from Citigroup, should it be required. Its Individual rating reflects a marked improvement in asset quality, adequate capital base and good profitability within a difficult operating environment. The bank's foreign currency ratings are constrained by the sovereign ceiling.

Banamex was Mexico's second largest commercial bank ranked by total assets at end-June 2001. It offers a wide range of commercial, retail and investment banking services through its extensive national network of over 1,300 branches. Whilst Banamex was 100%-owned by Grupo Financiero Banamex-Accival (Banacci), a leading Mexican financial group, in August 2001 this was acquired by Citigroup of the US, which now holds a 99.9% stake. Citigroup is in the process of integrating its Mexican banking operations, Citibank Mexico, into Banamex. This process is expected to be finalized in early 2002 and management of the new institution will be largely based on that of Banamex. Although the name of the bank will remain the same, Banacci has been renamed Grupo Financiero Banamex. Banamex has significant investments in Banco Bansud of Argentina (60%) and California Commerce Bank of the US (100%), which are in the process of being restructured to fit Citigroup's global strategy.