Long-standing customer relationships in its niche market; and Diversified non-interest revenues that provide business stability Small market share in the Mexican banking industry; Single-name and geographic loan concentrations; and Wholesale deposit base concentation. The negative outlook reflects our expectations that there's a one-in-three chance of a downgrade in the next 12 months. This could happen if higher loan-loss reserve generation lowers bottom-line results and doesn't offset the expected growth in risk-weighted assets. This would result in a consolidated RAC ratio below the 7% threshold, diminishing the bank's loss-absorption capacities. We could revise the outlook to stable in the next 12 months if Mifel's income generation is above our expectations, thanks to lower loan-loss reserves and modest loan portfolio growth. This
