Research Update: Banca Mifel S.A. 'BB' And 'mxA' Ratings Placed On CreditWatch Positive On Possible Initial Public Offering

Mexico-based Grupo Financiero Mifel announced its plans to conduct an initial public offering (IPO) within the next few days. In our base-case scenario, considering the bank's expected loan growth levels, the IPO could make us revise the bank's risk-adjusted capital (RAC) ratio to a stronger category (above 10%), which could trigger an upgrade on Banca Mifel. We're placing our long-term 'BB' global and 'mxA' Mexican national scale ratings, as well as Banca Mifel's 'B' subordinated debt issuance rating, on CreditWatch with positive implications. We intend to resolve the CreditWatch in the next 90 days, once we analyze if the increase in the bank's capital base and its growth projections are enough to result in a consistent projected RAC ratio above

...+ Mexico-based Grupo Financiero Mifel announced its plans to conduct an initial public offering (IPO) within the next few days. In our base-case scenario, considering the bank's expected loan growth levels, the IPO could make us revise the bank's risk-adjusted capital (RAC) ratio to a stronger category (above 10%), which could trigger an upgrade on Banca Mifel. + We're placing our long-term '##' global and 'mxA' Mexican national scale ratings, as well as Banca Mifel's 'B' subordinated debt issuance rating, on CreditWatch with positive implications. + We intend to resolve the CreditWatch in the next 90 days, once we analyze if the increase in the bank's capital base and its growth projections are enough to result in a consistent projected RAC ratio above 10%....

Research Update