Citi's Banamex downgraded by Moody's

Banamex's long-term local-currency senior debt rating is trimmed one notch to A3 from A2 following the the discovery three months ago of a $400M loan fraud.

"Structural and cultural risk-management and governance issues might be broader than initially thought, and generate concerns that other lines of business may be affected as well,” says Moody's.

Citigroup (C) last month fired 11 for failing to prevent or discover loans to Oceanografia based on collateral that didn't exist. The SEC and DOJ are investigating, and the Mexican AG has issued arrest warrants for a number of people, including some who worked at Banamex.

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Comments (1)
  • Ruffdog
    , contributor
    Comments (3432) | Send Message
    Old news? Who downgraded waited one month to do this downgrade?
    4 Jun 2014, 09:42 AM Reply Like
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