Bancomer's Foreign Currency Outlk to Positive by S&P.NEW YORK--(BUSINESS WIRE)--S&P CreditWire 9/2/97--Standard & Poor's today revised the outlook of Bancomer's double-`B' foreign currency counterparty Counterparty The other participant, including intermediaries, in a swap or contract. rating to positive from stable. In addition, Standard & Poor's affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. Bancomer's triple-`B'-minus local currency counterparty rating. The local currency outlook remains negative. The outlook revision follows a similar change in the United Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum States' foreign currency outlook to positive from stable. Bancomer is Mexico's second largest bank with Ps 196 billion (US$24.7 billion) in assets as June 30, 1997. Bancomer has proved to have a strong retail market share, as evidenced by the stable and low cost deposit base it has maintained throughout the Mexican banking crisis. The bank's financial profile remains weak, however, with asset quality still a burden for growth. During the first half of 1997, total loans amounted Ps 123.4 billion of which 18.6% were non-performing. Despite posting a small real growth in its portfolio during the second quarter of 1997 and stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders in non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. , the performance of Bancomer's restructured loans and mortgage book are key to an improvement in its financial profile. Large allocations to loan loss reserves have constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. profits. As of June 1997, the bank posted Ps 709 million net income, mostly deriving from strong results at subsidiaries level and the benefits of deferred taxes, Standard & Poor's said. ---CreditWire CONTACT: Ursula M Wilhelm, (52) 5-280-4300 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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