Moody’s Drops All Citibanamex Ratings, Ratings Under Review for Downgrade | Investment News


MEXICO CITY (Reuters) – Ratings agency Moody’s Investors Service on Sunday placed all ratings and ratings for Citigroup’s consumer banking arm in Mexico under review for downgrade.

In a statement, Moody’s said the review was triggered by Citigroup’s announcement of the sale of its Citibanamex strategy-revamp-2022-01-11 consumer banking operations, which will end a two-decade retail presence in Mexico.

All ratings and ratings were under review except for the bank’s short-term deposit rating on Mexico’s national scale of MX-1, Moody’s said.

“Moody’s has placed Citibanamex’s ratings and valuations under review for downgrade to incorporate the uncertainties that will arise from this disposal and the implications on the bank’s standalone credit profile,” the credit agency said.

Citigroup’s decision to sell or spin off Citibanamex, Mexico’s third-largest bank by assets in June, is part of Chief Executive Jane Fraser’s strategy -citigroup-ceo-goals/citigroups-next -ceo-has-a-herculean-task-transforming-the-bank-for-real-idUSKBN2621J8?enowpopup to align Citigroup profitability and stock price performance action on his peers.

(Reporting by Diego Ore and Cassandra Garrison; Editing by Nick Zieminski)

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