Moody’s places all Citibanamex ratings, assessments on review for downgrade

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

In a statement, Moody’s said the review was triggered by Citigroup’s announcement that it would sell its Citibanamex consumer banking operations, which will end a two decade retail presence in Mexico.

All ratings and assessments were on review, except the bank’s short-term Mexican National Scale deposit rating of MX-1, Moody’s said.

“Moody’s placed Citibanamex’s ratings and assessments on review for downgrade in order to incorporate the uncertainties that will come out of this divestiture 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 biggest bank by assets as of June, is part of chief executive Jane Fraser’s strategy to bring Citigroup’s profitability and share price performance in line with its peers.

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