Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
Global Credit Research - 20 Dec 2010
$64 million of USD Notes and $24 million of UDI denominated Notes affected
New York, December 20, 2010 -- Moody's Investors Service has downgraded to Ba3 from Ba2 the rating
on the USD Notes denominated in U.S. dollars, and
UDI Notes denominated in inflation-indexed units or Unidades de
Inversion (UDIs) of the Mexico City Airport Trust (Fumisa). The
downgrade concludes the review period which began on August 19,
2010. The rating outlook is negative, reflecting the continuation
of a potentially negative circumstances which could result in further
weakening of credit quality in the next 18 months.
The review of the rating was triggered by the bankruptcy filing of Compañia
Mexicana de Aviacion S.A. de C.V (Mexicana) on August
3rd, and the potential loss of passenger traffic through Terminal
1 (T1) of the Mexico City International Airport (AICM) given that the
airline represented approximately 33% of total terminal passengers.
Although the revenues to pay debt service are generated from contractual
sublease payments of tenants located in T1 and not directly tied to passenger
flow, a drop in passengers could have negative implications for
the financial performance of the tenants in the medium-term and
the ability of Fumisa to sublease tenant space.
The current rating action takes into account the possible loss of revenue
for the concessionaire from the fall off of passenger use of the tenants
in T1 and the related financial implications, but also incorporates
the stronger than typical project finance structural features, which
include cash trap mechanisms and debt service related reserve accounts,
as well as others, which provide the company with adequate liquidity
that protects creditors in certain downside scenarios.
The rating also incorporates the expectation that the structure could
hit the debt service coverage ratio (DSCR) trigger below 1.15x
in the next year. This would not result in a default, but
it would trigger an acceleration of principal repayment via a sweep of
all excess cash in the waterfall, resulting in the bonds being re
paid in full prior to their stated maturity in December 2013. Moody's
notes that this is a strong creditor protection feature that is not typical
in project financing structures and helps to support the current ratings
level. A DSCR below 1.0x could be reached under additional
severe circumstances, which Moody's believes unlikely at this
time. We note also that despite the challenges faced in the last
couple of years, in 2010 T1 will still process approximately 11
In the months following the Mexicana bankruptcy filing, international
passenger traffic at T1 showed a decline of approximately 34% in
each September, October, and Novembercompared to the same
months in the previous year. The trustee report for the most recent
reporting quarter ending December 2, shows that the passenger threshold
trigger in the structure has been hit. Consequently, there
were no distributions for the period, and the excess cash was trapped
in the Trigger Reserve Account. In the coming months, it
is likely that passenger traffic will be under the threshold given that
most of Mexicana's routes have been picked up by other carriers,
although the situation should stabilize somewhat after the initial drop.
In addition, the U.S. F.A.A.
has restored Mexico's civil aviation authority to Category 1,
and new U.S. routes may now be picked up by other Mexican
carriers. This could help to restore some passenger traffic volumes.
Though the lease revenues are not directly tied to passenger traffic,
the lease rental revenue does fluctuate with the number of passengers
coming through the terminal. In the most recent reporting period,
collections were down 11% from the same period in 2009.
Dufry duty free shops and news stands now comprise 44% of the total
lease revenues, posing a concentration risk if the company decided
to stop operating at T1.
DSCR in the most recent quarterly reporting period was 1.17x,
down from 1.33x in the previous reporting quarter ending August
31, 2010. We note that the 1.33x was the highest the
DSCR had been since at least the last quarterly reporting period of 2008.
The DSCR for the current quarterly period, which will end at the
end of February 2011, is likely to be above 1.15x given the
drop in debt service payments by approximately $1.7 million
compared to the last period. If however, DSCR is below 1.15x,
an early amortization of the notes would be triggered unless the sponsor
chose to avoid the early amortization by injecting cash into the Coverage
Reserve Account, an option that is available to it two more times
over the life of the debt, with the limitation of a 12-month
period in between the use of this cure mechanism. If the early
amortization is triggered and not cured, all of the excess cash
in the structure would be used to sweep debt and the notes would be paid
off prior to the original maturity date of December 2013, hence
adequately providing investor security at the current rating level.
As of the end of November, the structure also had approximately
$28 million in reserves that are specifically dedicated to the
payment of debt service. The amounts in the debt service and trigger
reserve accounts would be used if net revenues were insufficient to make
debt service payments or to pay the remaining notes outstanding.
Moody's estimates that revenues for Fumisa would have to fall another
20% for DSCR to be below 1.0x, and this would only
likely occur if there was another unexpected external shock to the system
that would cause a major tenant in T1 to break the lease contract or otherwise
compromise the financial stability of a number of the tenants.
The majority of tenant leases expire at the end of 2013.
Additionally, the structure now holds $11 million in tenant
security and advance payment accounts, which can be used for debt
service payments at the very bottom of the payment waterfall. However,
if tenant financial conditions were to deteriorate over the next year,
we would expect that these funds would be used at the top of the waterfall,
as revenues, and be unavailable to pay debt service directly.
Moody's expects that the structure will continue to trap cash,
given that it is likely to miss the passenger threshold. Additionally,
Moody's believes it is highly likely that in the next year DSCR
will go below 1.15x and the structure would enter an early amortization
period , triggering a sweep of all excess cash which would result
in the repayment of the outstanding notes prior to their stated maturity.
Although not expected at this time, the rating on the lease revenue
bonds could improve if the stability of the tenants at T1 were to improve,
which would most likely be the case if passenger traffic rose in the coming
year and DSCR stabilized at above 1.25x. The rating could
go down if a major tenant broke its lease or the airport faced another
major external shock that as a secondary effect once again drove down
Fumisa's revenues significantly.
Bond ratings were assigned by evaluating factors believed to be relevant
to the credit profile of the issuer such as i) the business risk and competitive
position of the issuer versus others within its industry or sector,
ii) the capital structure and financial risk of the issuer, iii)
the projected performance of the issuer over the near to intermediate
term, iv) the issuer's history of achieving consistent operating
performance and meeting budget or financial plan goals, v) the nature
of the dedicated revenue stream pledged to the bonds, vi) the debt
service coverage provided by such revenue stream, vii) the legal
structure that documents the revenue stream and the source of payment,
and viii) and the issuer's management and governance structure related
Information sources used to prepare the credit rating are the following:
parties involved in the ratings, parties not involved in the ratings,
public information, confidential and proprietary Moody's Investors
Service information, and confidential and proprietary Moody's
Moody's Investors Service considers the quality of information available
on the issuer or obligation satisfactory for the purposes of maintaining
a credit rating.
Moody's adopts all necessary measures so that the information it uses
in assigning a credit rating is of sufficient quality and from sources
Moody's considers to be reliable including, when appropriate,
independent third-party sources. However, Moody's
is not an auditor and cannot in every instance independently verify or
validate information received in the rating process.
Please see ratings tab on the issuer/entity page on Moodys.com
for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to
a time before Moody's Investors Service's Credit Ratings were fully digitized
and accurate data may not be available. Consequently, Moody's
Investors Service provides a date that it believes is the most reliable
and accurate based on the information that is available to it.
Please see the ratings disclosure page on our website www.moodys.com
for further information.
Please see the Credit Policy page on Moodys.com for the methodologies
used in determining ratings, further information on the meaning
of each rating category and the definition of default and recovery.
VP - Senior Credit Officer
Project Finance Group
Moody's Investors Service
Chee Mee Hu
MD - Project Finance
Project Finance Group
Moody's Investors Service
Moody's Investors Service
Moody's lowers the rating on the Mexico City Airport Trust Notes to Ba3 from Ba2. Outlook is negative.
250 Greenwich Street
New York, NY 10007
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.