Circular 9/2022 — Modifies Circular 39/2020

Monday, August 22, 2022 OFFICIAL GAZETTE 1
BANCO DE MEXICO
CIRCULAR 9/2022 addressed to Credit Institutions, the National Financial Development Institution for Agricultural, Rural, Forestry and Fisheries Development, Insurance Institutions, Surety Institutions, Brokerage Houses, Investment Funds, Investment Fund Operating Companies, Investment Fund Share Distribution Companies, Retirement Fund Administrators, Specialized Retirement Fund Investment Companies, Exchange Houses, Savings and Loan Cooperative Societies, Popular Financial Societies, Community Financial Societies, Multiple-Objective Financial Societies, General Warehouses, Credit Unions, Collective Financing Institutions, Electronic Payment Fund Institutions, Financial Entities acting as Trustees in Trusts that grant Credit, Loans or Financing to the Public, Economic Development Trusts, Development Financial Entities, as well as other Persons and Trusts regarding which the Bank exercises regulatory powers, including Credit Information Companies, Companies that professionally provide the Fund Transfer Service, Clearing Houses and Payment System Administrators, in terms of the respective laws, regarding the Modifications to Circular 39/2020 (update of the correspondence of ratings assigned by Securities Rating Agencies).

At the margin a logo, which says: Bank of Mexico.- “2022: Year of Ricardo Flores Magón”.

CIRCULAR 9/2022
TO CREDIT INSTITUTIONS, THE
NATIONAL FINANCIAL DEVELOPMENT INSTITUTION FOR AGRICULTURAL, RURAL, FORESTRY AND FISHERIES DEVELOPMENT, INSURANCE INSTITUTIONS, SURETY INSTITUTIONS, BROKERAGE HOUSES, INVESTMENT FUNDS, INVESTMENT FUND OPERATING COMPANIES, INVESTMENT FUND SHARE DISTRIBUTION COMPANIES, RETIREMENT FUND ADMINISTRATORS, INVESTMENT COMPANIES SPECIALIZED IN RETIREMENT FUNDS, EXCHANGE HOUSES, SAVINGS AND LOAN COOPERATIVE SOCIETIES, POPULAR FINANCIAL SOCIETIES, COMMUNITY FINANCIAL SOCIETIES, MULTIPLE-OBJECTIVE FINANCIAL SOCIETIES, GENERAL WAREHOUSES, CREDIT UNIONS, COLLECTIVE FINANCING INSTITUTIONS, ELECTRONIC PAYMENT FUND INSTITUTIONS, FINANCIAL ENTITIES THAT ACT AS TRUSTEES IN TRUSTS THAT GRANT CREDIT, LOAN OR FINANCING TO THE PUBLIC, ECONOMIC DEVELOPMENT TRUSTS, DEVELOPMENT FINANCIAL ENTITIES, AS WELL AS OTHER PERSONS AND TRUSTS REGARDING WHICH THE BANK EXERCISES REGULATORY POWERS, INCLUDING THE CREDIT INFORMATION COMPANIES, THE COMPANIES THAT PROVIDE PROFESSIONALLY THE FUND TRANSFER SERVICE, CLEARING HOUSES AND THE PAYMENT SYSTEM ADMINISTRATORS, IN TERMS OF THE LAWS RESPECTIVE:

2 OFFICIAL GAZETTE Monday, August 22, 2022
SUBJECT: MODIFICATIONS TO CIRCULAR 39/2020
(UPDATE OF THE CORRESPONDENCE
OF RATINGS ASSIGNED BY
SECURITIES RATING AGENCIES)

The Bank of Mexico, with the purpose of continuing to promote the sound development and stability of the financial system, considers it convenient to update the correspondence of the rating scales that the securities rating agencies carry out, in attention to the recent modifications in the nomenclatures used by said agencies, for those cases of the provisions of a general nature or resolutions of the Bank itself that make reference to a specific rating degree, without submitting these modifications to public consultation, since this would not be convenient for its purpose, considering that it is a change in the nomenclatures used by the rating agencies.

For the above, based on articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 24 and 26 of the Bank of Mexico Law, 46 Bis 5, fraction II, 48, 54, fractions I and III, 81, second paragraph, and 96 Bis of the Credit Institutions Law, 176 of the Securities Market Law, 15 of the Investment Funds Law, 48, fraction VI, of the Savings for Retirement Systems Law, 11 Bis 2, fraction XI, and 87-D, fourth paragraph, of the General Law of Auxiliary Credit Organizations and Activities, 132 and 157 of the Insurance and Surety Institutions Law, 22 of the Law for the Transparency and Ordering of Financial Services, 1, 4, first paragraph, 8, fourth and eighth paragraphs, 10, first paragraph, 12, first paragraph, in relation with 19 Bis 1, fraction XI, 14 Bis, first paragraph, in relation with 17, fraction I, 14 Bis 1, in relation with 25 Bis 1, fraction IV, 20 Quáter, fraction IV, and 25 Bis, fraction VII, of the Internal Regulations of the Bank of Mexico, as well as 14, fraction IV, of the Policies for public consultation of the general provisions issued by the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Central Banking Operations, the General Legal Directorate, the General Directorate of Financial System Affairs, the Directorate of Policy and Studies of Payment Systems and Market Infrastructures and the Directorate of Financial System Information, respectively, as well as Second, fractions I, IV, VI, X and XVII, of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, has resolved to modify the Long-Term Local-Scale Credit Rating Table and the Short-Term Local-Scale Credit Rating Table, contained in Annexes 2 and 4, respectively, of Circular 39/2020, to remain in the following terms:

“ANNEX 2
Long-Term Local-Scale Credit Rating Table
Level S&P MOODY’S FITCH HR RATINGS VERUM A.M. Best DBRS N1mx mxAAA AAA.mx AAA (mex) HR AAA AAA/M aaa.mx AAA.MX N2mx mxAA+ AA+.mx AA+ (mex) HR AA+ AA+/M aa+.mx AA.MX (high) N3mx mxAA AA.mx AA (mex) HR AA AA/M aa.mx AA.MX N4mx mxAA- AA-.mx AA- (mex) HR AA- AA-/M aa-.mx AA.MX (low) N5mx mxA+ A+.mx A+ (mex) HR A+ A+/M a+.mx A.N.MX (high) N6mx mxA A.mx A (mex) HR A A/M a.mx A.N.MX N7mx mxA- A-.mx A- (mex) HR A- A-/M a-.mx A.N.MX (low) N8mx mxBBB+ BBB+.mx BBB+ (mex) HR BBB+ BBB+/M bbb+.mx BBB.N.MX (high) N9mx mxBBB BBB.mx BBB (mex) HR BBB BBB/M bbb.mx BBB.N.MX N10mx mxBBB- BBB-.mx BBB- (mex) HR BBB- BBB-/M bbb-.mx BBB.N.MX (low)

Monday, August 22, 2022 OFFICIAL GAZETTE 3
N11mx mxBB+ BB+.mx BB+ (mex) HR BB+ BB+/M bb+.mx BB.N.MX (high) N12mx mxBB BB.mx BB (mex) HR BB BB/M bb.mx BB.N.MX N13mx mxBB- BB-.mx BB- (mex) HR BB- BB-/M bb-.mx BB.N.MX (low) N14mx mxB+ B+.mx B+ (mex) HR B+ B+/M b+.mx B.N.MX (high) N15mx mxB B.mx B (mex) HR B B/M b.mx B.N.MX N16mx mxB- B-.mx B- (mex) HR B- B-/M b-.mx B.N.MX (low) N17mx mxCCC+ CCC+.mx CCC+ (mex) ccc+.mx CCC.N.MX (high) N18mx mxCCC CCC.mx CCC (mex) ccc.mx CCC.N.MX N19mx mxCCC- CCC-.mx CCC- (mex) ccc-.mx CCC.N.MX (low) N20mx mxCC CC.mx CC (mex) N21mx HR C+ N22mx mxC C.mx C (mex) HR C C/M N23mx HR C- N24mx Lower Ratings …”

“ANNEX 4
Short-Term Local-Scale Credit Rating Table
Level S&P MOODY’S FITCH HR RATINGS VERUM DBRS
R-1.N (high) mxA-1+ F1+ (mex) HR+1 1+/M
Nimx ML A-1.mx R-1.N (medium) mxA-1 F1 (mex) HR1 1/M R-1.N (low) R-2.N (high) Niimx mxA-2 ML A-2.mx F2 (mex) HR2 2/M R-2.N (medium) R-2.N (low) Niiimx mxA-3 ML A-3.mx F3 (mex) HR3 3/M R-3.N Nivmx mxB ML B.mx B (mex) HR4 4/M R-4.N Nvimx mxC ML C.mx C (mex) HR5 D/M R-5.N Nvimx Lower Ratings …”

TRANSITIONAL PROVISION
SINGLE. This Circular shall enter into force the day following its publication in the Official Gazette of the Federation.

Mexico City, August 11, 2022.- BANK OF MEXICO: General Director of Central Banking Operations, Gerardo Israel García López.- Signature.- General Legal Director, Luis Urrutia Corral.- Signature.- General Director of Financial System Affairs, José Luis Negrín Muñoz.- Signature.- Director of Policy and Studies of Payment Systems and Market Infrastructures, Othón Martino Moreno González.- Signature.- Director of Financial System Information, Juan Fernando Avila Embriz.- Signature.

For any queries regarding the content of this Circular, the Bank of Mexico is at your disposal through the Directorate of Authorizations and Sanctions of Central Banking at telephone (55) 5237-2000 extension 3200.