OREANDA-NEWS. S&P Global Ratings assigned its 'BBB+' issue-level rating to Banco Inbursa S. A. Institucion de Banca Multiple Grupo Financiero Inbursa's (Banco Inbursa) proposed senior unsecured notes for up to $1 billion. The tenure of the notes will be 10 years and will bear a fixed rate.

At the same time, we affirmed our 'BBB+' long - and 'A-2' short-term global scale issuer credit ratings (ICR) and our 'mxAAA' long - and 'mxA-1+' short-term national scale issuer credit ratings on the bank. The outlook on the global scale ratings is negative and the one on the national scale rating is stable.

We also affirmed our 'BBB+' issue-level rating on the bank's current and outstanding $1 billion senior unsecured bond and our 'mxAAA' issue-level rating on all of the bank's senior unsecured bonds issued in the local market.

Finally, we affirmed our 'mxAAA' long - and 'mxA-1+' short-term issuer credit and issue-level ratings, as applicable, on the bank's core entities Inversora Bursatil S. A. de C. V. Casa de Bolsa, CF Credit Services, S. A. de C. V. (CF Credit), and Sociedad Financiera Inbursa, S. A. de C. V. (SFI).

The ratings on the notes are the same as the long-term ICR on the bank, reflecting the new debt's pari passu ranking in right of payment with all of Banco Inbursa's senior unsecured debt obligations. Our view of the bank's funding and liquidity, including the proposed notes, is unchanged and we continue to view its funding as average and its liquidity as adequate. The bank will use the proceeds from the issuance to substitute current market debt, reduce the amount of hedging derivatives for its dollar-denominated liabilities, and consequently, decrease the volatility in its trading gains/losses. As a result, we don't expecting any incremental market debt.

On the other hand, the ICR on Banco Inbursa continues to reflect our strong assessment for the bank's capital and earnings, stemming from our forecasted risk-adjusted capital (RAC) of 13.8% on average for the next 18 months. Our business and risk position assessments are unchanged, deeming them as adequate. This opinion continues to be supported by stable market shares and gradual business diversification as well as asset quality metrics that are in line with those of the Mexican banking system. Banco Inbursa's stand-alone credit profile (SACP) also remains at 'bbb+'.