Fitch places Citibanamex ratings on review for downgrade

BY Reuters | CORPORATE | 01/17/22 08:18 PM EST

MEXICO CITY, Jan 17 (Reuters) - Ratings agency Fitch said on Monday it has placed various ratings from Citigroup's (C) consumer banking arm in Mexico on review for downgrade after Citigroup (C) announced plans to sell the unit.

The review, dubbed Rating Watch Negative (RWN), applies to ratings at Citibanamex, as the Mexico business is known, as well as some affiliate units.

"The RWN reflects the uncertainty about the potential credit implications for these rated subsidiaries from their parent company's decision to exit the consumer, small business and middle market financial businesses in Mexico," Fitch said in a statement

Fitch said concluding its review could take more than six months, and would depend on detailed information about the exit process becoming available.

Fitch affirmed the national scale ratings of Citibanamex Casa de Bolsa, saying the brokerage house is expected to continue in Mexico with Citigroup's (C) support.

Ratings agency Moody's on Sunday also placed Citibanamex ratings on review for downgrade, citing the planned sale. (Reporting by Daina Beth Solomon; editing by Richard Pullin)

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