LatinNews Daily - 06 December 2022

*Moody’s Local Mexico, the local platform of international credit ratings agency Moody’s, has stated that regional Mexican banks Banco Bajío (BanBajío) and Banco Regional (BanRegio) will benefit from nearshoring trends despite an adverse outlook for 2023. In excerpts of a report circulated by the local press, the agency said that the banks “will continue enjoying high profitability and consolidating their franchises”. Moody’s pointed out that the banks concentrated their activities in states “that have a greater economic dynamism than the national average” and which “can benefit positively from global phenomena such as the relocation of global production and supply chains to destinations closer to the US (nearshoring)”. Therefore, although Moody’s predicts 2023 will be a challenging year for the banking sector in general due to slow growth and high inflation, the agency states that the experience of these two banks in sectors such as automobiles, construction of industrial ships and high-value agricultural products in regions that will benefit most from nearshoring, “opens up a great possibility for continued strong results in coming years”. Mexico’s Economy Minister Raquel Buenrostro and US secretary of commerce, Gina Raimondo, discussed nearshoring opportunities in a meeting on 2 December.

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