We forecast that Mexico-based development bank Bancomext's loan portfolio will contract for a second consecutive year this year, with asset quality slipping but still manageable. Our ratings on the state-owned bank continue to reflect our view of the likelihood of extraordinary support from the government, if needed. The latter reflects the bank's critical role to the government as its financial vehicle to promote and develop foreign trade in Mexico. We affirmed our global scale 'BBB/A-2' foreign currency ratings, 'BBB+/A-2' local currency ratings, and national scale 'mxAAA/mxA-1+' ratings on the bank. The stable outlook mirrors the outlook on the sovereign, based on our view that in the next two years, the bank will remain a key promoter of trade finance activities
