Fitch Affirms Banco Nacional de Mexico's Ratings

Business Wire, Oct 29, 2004

NEW YORK -- Fitch Ratings has affirmed Banco Nacional de Mexico's (Banamex) ratings at foreign currency long-term 'BBB-' (Outlook Stable) short-term 'F3', local currency long-term 'A-', short-term 'F2', individual 'C', and support '2'. The ratings reflect its dominant competitive position and market share in Mexico and its generally sound financial condition. The ratings also reflect the potential support the bank would receive from its parent, Citigroup, should it be required. The bank's foreign currency ratings are constrained by the country's sovereign rating.

Banamex was Mexico's second largest commercial bank ranked by total assets at the end of June 2004 with a 22% market share. It offers a wide range of commercial, retail, and investment banking services through its extensive nationwide network of 1,346 branches. While Banamex was 100%-owned by Grupo Financiero Banamex-Accival (Banacci), a leading Mexican financial group, in August 2001, it was acquired by Citigroup in the U.S., which now holds a 100% stake. Citigroup's former operations in Mexico, Grupo Financiero Citibank (financial group), Citibank Mexico (commercial bank), and Afore Garante (pension fund management) were merged into Banacci and Banamex in October 2001. Although the name of the bank remained unchanged, the financial group was renamed Grupo Financiero Banamex. The management of the new institution was largely drawn from Banamex.