Fitch Upgrades Mexican Commercial Banks Following Sovereign Upgrade.

NEW YORK -- -Fitch has taken the rating actions on the Mexican commercial banks outlined below, following the upgrade of Mexico's sovereign ratings.

The upgrades in Banco Nacional de Mexico, BBVA Bancomer, and Banco Santander Serfin's ratings reflect their strong ownership structures and shareholder commitment, as the three are owned by highly rated international banks (respectively, Citigroup, Banco Bilbao Vizcaya Argentaria, and Banco Santander Central Hispano). These banks continue to have solid franchises, a strong competitive position within the Mexican banking system, and a generally sound financial condition. The long-term foreign currency ratings for these banks are at Mexico's country ceiling while their long-term local currency ratings are above the sovereign.

The upgrade for Banco Inbursa's long-term foreign currency rating places this rating at the same level as its long-term local currency rating, reflecting an overall sound performance. The long-term foreign currency ratings for Grupo Financiero Banorte and Banco Mercantil del Norte were placed on Positive Outlook, also reflecting their overall sound and improving performance, which Fitch expects should continue to improve in the medium term. In general, the rating changes described above take into consideration the better prospects for the Mexican banking system, fuelled by a more stable macroeconomic environment.

Banco Nacional de Mexico

--Long-term foreign currency upgraded to 'BBB+' from 'BBB', Outlook Stable;

--Short-term foreign currency affirmed at 'F2';

--Long-term local currency upgraded to 'A' from 'A-';

--Short-term local currency upgraded to 'F1' from 'F2';

--Individual affirmed at 'C';

--Support affirmed at '2'.

BBVA Bancomer

--Long-term foreign currency upgraded to 'BBB+' from 'BBB', Outlook Stable;

--Short-term foreign currency affirmed at 'F2';

--Long-term local currency upgraded to 'A-' from 'BBB+';

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

--Individual affirmed at 'C';

--Support affirmed at '2'.

Banco Santander Serfin

--Long-term foreign currency upgraded to 'BBB+' from 'BBB', Outlook Stable;

--Short-term foreign currency affirmed at 'F2';

--Long-term local currency upgraded to 'A-' from 'BBB+';

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

--Individual affirmed at 'C';

--Support affirmed at '2'.

Banco Inbursa

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

--Short-term foreign currency affirmed at 'F3';

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

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

--Individual affirmed at 'C';

--Support affirmed at '4'.

Grupo Financiero Banorte

--Long-term foreign currency affirmed at 'BBB-', Outlook to Positive from Stable;

--Short-term foreign currency affirmed at 'F3'

--Long-term local currency affirmed at 'BBB-'

--Short-term local currency affirmed at 'F3'

--Individual affirmed at 'C/D'

--Support affirmed at '5'.

Banco Mercantil del Norte

--Long-term foreign currency affirmed at 'BBB-', Outlook to Positive from Stable;

--Short-term foreign currency affirmed at 'F3';

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

--Short-term local currency affirmed at 'F3';

--Individual affirmed at 'C/D';

--Support affirmed at '3'.

Fitch's rating definitions and the terms of use 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 are also available from the 'Code of Conduct' section of this site.