...On 12 July 2022, we downgraded Nacional Financiera, S.N.C.'s (Nafin) issuer ratings to Baa2, from Baa1, following the downgrade of the Government of Mexico's debt rating to Baa2. The outlook was changed to stable from negative. On the same action, we affirmed Nafin's ba1 Baseline Credit Assessment (BCA) and adjusted BCA that reflect the bank's relatively low risk profile, given its main focus on on-lending via other financial institutions. However, Nafin's standalone strength is constrained by its high reliance on market funding and modest profitability. The affirmation also took into consideration the increase in the bank's problem loans, underscored by its high single- borrower and industry concentrations, key risks limiting Nafin' credit quality despite a historically low problem loan ratio. Nafin benefits from solid access to capital markets, with the Mexican federal government providing statutory support for all liabilities. Nafin's Baa2 issuer ratings incorporate two notches of uplift...