Our ratings are supposed to look through very near-term events, and most banks we rate with exposure to the area are well enough diversified. |
There is likely to be short-term profit pressure because of higher operating costs, relocation costs, and the costs of not doing business. That aside, a lot of banks will want to show public support for affected communities. |
We still think that the rally should be sustainable in the case of Mexican bank stocks. Their story is one of restructuring, recovery and re-engineering, all of which should lead to an upward re-rating of the sector. |