Fitch Affirms Mexico's IPAB at 'BBB+' & 'AAA(mex)'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch affirms Mexico's deposit insurance fund, Instituto para la Proteccion al Ahorro Bancario (IPAB IPAB Instituto para la Proteccion al Ahorro Bancario (Mexico) IPAB International Program for Antarctic Buoys ), as follows: --Local currency long-term Issuer Default Rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) at 'BBB+'; --National-scale long-term rating at 'AAA(mex)'; --National-scale short-term rating at 'F1+(mex)'; The ratings assigned to IPAB are in line with the long term local currency rating of the United Mexican States and reflects the legal framework for the fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of its financial obligations as well as its systemic importance to the Mexican financial sector in its character of deposit insurance fund. IPAB's ratings could be negatively affected by changes in its legal framework or a reduction in the transfers of budgetary resources from the sovereign (its primary source of funding, being the others banks' contributions and assets sales) that could alter its financial flexibility. IPAB, in operations since May 1999, assumed FOBAPROA FOBAPROA Fondo Bancario de Protección al Ahorro (Spanish) (former deposit insurer Fondo Bancario para la Proteccion al Ahorro)'s assets and liabilities. While IPAB's debt does not have a specific government guarantee, its Organic Law contemplates that if IPAB is not in a condition to face its financial obligations, the Mexican Congress will dictate the measures for the payment of the guaranteed obligations and financing of supported financial institutions. This also states that Congress will provide, in a specific item of the Expenditures Decree, the corresponding budgetary resources required by IPAB to face its financial obligations. In addition, IPAB's bond issuances since 2000, known as Bonos de Proteccion al Ahorro (BPAs), benefit from a contingent payment mechanism which, in Fitch's view, further strengthens the ability to honor these bonds. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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