Summary: Banca Mifel S.A.

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. Our issue credit ratings on Banca Mifel reflect its revenue stability, although from a concentrated business mix that relies on commercial and housing loans. Our projected RAC ratio for the bank of about 7.4% for 2017 and 2018 incorporates a credit growth above the industry's expected average and stable internal capital generation. Banca Mifel's loan portfolio remains concentrated, but its asset quality metrics are in line with the banking industry's average. The ratings also incorporate a lower proportion of deposits in the bank's funding structure than the industry average

...Our issue credit ratings on Banca Mifel reflect its revenue stability, although from a concentrated business mix that relies on commercial and housing loans. Our projected RAC ratio for the bank of about 7.4% for 2017 and 2018 incorporates a credit growth above the industry's expected average and stable internal capital generation. Banca Mifel's loan portfolio remains concentrated, but its asset quality metrics are in line with the banking industry's average. The ratings also incorporate a lower proportion of deposits in the bank's funding structure than the industry average and a stable funding ratio below that of the system. Banca Mifel's liquidity position provides adequate cushion to cope with unexpected cash outflows in the next 12 months. The stand-alone credit profile (SACP) remains '##'....

Summary