Enhanced internal capital generation that supports adequate capitalization. Longstanding customer relationships in its niche market. Single-name and geographic concentrations. Small market share in the Mexican banking industry despite aggressive loan growth. The stable outlook on Banca Mifel S.A. in the next 12-18 months reflects S&P Global Ratings' expectation that the projected risk-adjusted capital (RAC) ratio will be about 7.4% for the next two years and the bank will maintain stable financial and asset quality performance. We could upgrade Banca Mifel in the next 12-18 months if it reduces its single-name concentration while maintaining its asset quality indicators, with nonperforming assets (NPAs) and charge-offs at least in line with those of the Mexican banking system, amid expected loan portfolio growth and
