Fitch Affirms Infonavit's IDRs at 'BBB+/A-'; Outlook Stable

NEW YORK & BOGOTA, Colombia--(BUSINESS WIRE)-- Fitch Ratings has affirmed the ratings for Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Infonavit) as follows:

--Long-term foreign currency Issuer Default Rating (IDR) at 'BBB+';

--Long-term local currency IDR at 'A-';

--Short-term foreign and local currency IDRs at 'F2';

--Support rating at '2';

--Support rating floor at 'BBB+';

--National long-term rating at 'AAA(mex)';

--National short-term rating at 'F1+(mex)'.

The Rating Outlook is Stable.

IDRS AND NATIONAL SCALE RATINGS

KEY RATING DRIVERS

Infonavit's IDRs and Rating Outlook are aligned with the Mexican sovereign ratings and reflect the high ability and propensity of support from the country's federal government if needed. The ability of support is reflected in the investment grade rating of 'BBB+' of Mexico. Fitch considers that even though Infonavit does not rely on a specific sovereign guarantee, the Federal Government will provide support due to the social role of Institute to provide housing needs solutions to private sector's workers in Mexico, especially to low income segments. Infonavit's national ratings are at the highest grades on the ratings scale and also reflect support.

RATING SENSITIVITIES

Any movements of the sovereign rating would trigger changes to Infonavit's IDRs. Its ratings could also change if Fitch perceives a decrease in the company's strategic importance to the federal government, but this scenario is unlikely in the short term.

SUPPORT AND SUPPORT RATING FLOOR

KEY RATING DRIVERS

Infonavit's Support Rating and Support Rating floor were affirmed at '2' and 'BBB+', respectively, given its important policy role as the largest mortgage lender in Mexico and Latin America. Fitch's Support Rating floors indicate a level below which the agency will not lower the bank's long-term IDRs as long as the assessment of the support factors does not change.

RATING SENSITIVITIES

A potential movements of Infonavit's Support rating and Support rating floor would be driven by a change in Mexico's sovereign rating and/or a change in the expected propensity of support from the Mexican government.

Additional information is available on www.fitchratings.com

Applicable Criteria and Related Research:

--'Global Non-Bank Financial Institutions Rating Criteria' (April 28, 2015);

--'National Ratings Criteria' (Oct. 30, 2013).

Applicable Criteria and Related Research:

Global Non-Bank Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865351

National Scale Ratings Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720082

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=984279

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Primary Analyst
Gilda de la Garza
Associate Director
+52 818 399 9160
Fitch Mexico S.A. de C.V.
Prol. Alfonso Reyes 2612
64920 Monterrey, Mexico
or
Secondary Analyst
Alba Zavala
Associate Director
+52 818 399 9137
or
Committee Chairperson
Theresa Paiz-Fredel
Senior Director
+1 212-908-0534
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
[email protected]

Source: Fitch Ratings

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