Fitch Upgrades BBVA Bancomer's Foreign Currency Ratings.

NEW YORK -- Fitch Ratings has upgraded the long-term and short-term foreign currency ratings of BBVA Bancomer to 'BBB' from 'BBB-' (Outlook Stable) and to 'F2' from 'F3', respectively. All other ratings have been affirmed as listed below. The upgrade, which brings the bank's long-term foreign currency rating to Mexico's country ceiling, conforms to Fitch's perception that there is a high probability that BBVA Bancomer's parent, Spain's Banco Bilbao Vizcaya Argentaria (BBVA), will support its Mexican subsidiary, if it became necessary. The upgrade is in line with Fitch's methodology for rating banks and corporates above the sovereign rating (Mexico's long-term foreign currency rating is rated 'BBB-' by Fitch). The bank's ratings are also driven by its solid franchise and predominant position within the Mexican banking system, as well as its consistently improving financial profile.

Fitch views positively the recent resolution of the dispute over loans sold to FOBAPROA during the Tequila crisis of the mid-1990s and judges that the related losses, while sizable, were readily absorbed by the bank and did not weaken its financial profile. Moreover, this transaction should improve the bank's liquidity position.

BBVA Bancomer is Mexico's largest bank with a market share of around 26% by total commercial bank assets. BBVA's ownership in Grupo Financiero BBVA Bancomer (GFBB), the bank's holding company, is 98.8%. In turn, GFBB owns 99.99% of BBVA Bancomer.

Fitch rates BBVA Bancomer as follows:

--Long-term foreign currency upgraded to 'BBB' from 'BBB-' (Outlook Stable);

--Short-term foreign currency upgraded to 'F2' from 'F3';

--Long-term local currency rating affirmed at 'BBB+';

--Short-term local currency rating affirmed at 'F2';

--Individual 'C';

--Support '2'.

Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.