Mexico, June 14, 2016 -- Moody's de Mexico (Moody's) has repositioned the national scale
ratings (NSRs) of 21 Mexican structured finance certificates in conjunction
with the recalibration of the Mexican national rating scale. At
the same time, Moody's has taken selective rating actions on the
global scale based on updated performance data.
NSRs, which provide a measure of relative creditworthiness within
a single country, are derived from GSRs using country-specific
maps, or correspondences. The adoption of a revised correspondence
between Moody's global scale ratings and the Mexican national scale follows
implementation of Moody's updated methodology "Mapping National Scale
Ratings from Global Scale Ratings" in Mexico on www.moodys.com.mx
at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_189644.
The revised correspondence for Mexican NSRs is available in the updated
compendium, published June 13, of National Scale Rating Maps
By Country at http://v3.moodys.com/viewresearchdoc.aspx?docid=PBC_190457
in Spanish and http://v3.moodys.com/viewresearchdoc.aspx?docid=PBC_190456
in English. The new methodology mirrors that implemented by Moody's
Investors Service in other jurisdictions last month. For more information,
please see "Moody's publishes updated methodology for national scale ratings"
https://www.moodys.com/research/Moodys-publishes-updated-methodology-for-national-scale-ratings--PR_348579.
Moody's Investors Service's updated NSR methodology is available in English
on www.moodys.com at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_189032.
With approximately 170 rated fundamental issuers in Mexico, the
new map has been designed using the modified approach, whereby the
map design is adjusted to reflect the distribution of fundamental ratings
in the country in order to ensure adequate opportunity for differentiation
where ratings are most highly concentrated. At the same time,
however, the modified approach also seeks to maintain the stability
of the map design in order to limit the volatility of NSRs derived from
it. Structured finance ratings are not taken into consideration
in the determination of the map design.
In the new national scale map for Mexico, the anchor point,
or the lowest GSR that can map to Aaa.mx, has been raised
to A3, which is equal to the sovereign bond rating, from the
previous level of Baa1. The revised map provides the ability to
differentiate on the national scale between issuers rated A3 and above
and those rated Baa1 on the global scale, which together account
for more than 20% of fundamental issuers. Although there
is a meaningful difference in the creditworthiness of these two groups
of issuers, as reflected in their global scale ratings, under
the previous map all were eligible to receive Aaa.mx NSRs.
In addition, in order to clarify the meaning of NSRs, overlap
-- where two GSRs can correspond to the same NSR --
has been eliminated from the Mexican national scale map, so every
NSR maps back to just one GSR (with the exception of Aaa.mx).
As a result of these changes, GSRs of B2 and above will in some
cases correspond to lower NSRs on the Mexican scale than they did previously,
GSRs of Caa1 and below may correspond to higher NSRs, while GSRs
of B3 may correspond to either higher or lower NSRs.
Consequently, approximately 20% of Mexican fundamental issuer's
primary long-term NSRs are being repositioned lower and 2%
are being repositioned higher. Certain short-term and other
NSRs may be affected for these and other issuers as well. In addition,
approximately 7% of the NSRs assigned to Mexican structured finance
transactions are being repositioned lower and 7% are being repositioned
higher. Almost all ratings changes are just one notch. The
repositioned NSRs of individual issuers do not signify a change in credit
risk, since the GSRs for these issuers remain unchanged.
As a result of the recalibration, the level of risk associated with
a particular Mexican NSR level (e.g. B2.mx) has changed
in some cases. NSRs have no inherent absolute meaning in terms
of default risk or expected loss; they are ordinal rankings of creditworthiness
relative to other domestic issuers within a given country. However,
a historical probability of default and/or expected loss consistent with
a given NSR can be inferred from the GSR to which it maps back at that
particular point in time. As a result, both the probability
of default and the expected loss associated with an NSR may change if
and when a country's national scale is remapped.
Moody's also took selective rating actions on global scale for some transactions
based on updated performance data and cash flow analysis. Moody's
considered credit enhancement and subordination levels for each transaction
and it also ran simulations with established parameters on prepayment
and loss rates. Specific factors related to the Mexican market
were also taken into account.
ISSUERS AND RATINGS AFFECTED
Please click on this link http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF433962
for the list of affected credit ratings. This list
is an integral part of this press release and identifies each affected
issuer.
RATING RATIONALE
Please click on this link http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF433962
for the List of Affected Credit Ratings. This list
is an integral part of this Press Release and provides, for each
of the credit ratings covered, Moody's disclosures on the
following items:
• Principal Methodology
• Loss and Cash Flow Analysis
NSRs are assigned by applying the published correspondence from GSRs.
Where a single GSR maps to multiple NSRs, rating committees assigned
higher or lower NSRs to individual issuers and debts depending on their
relative credit position within the same GSR category, using the
same methodologies as were used to determine the GSRs themselves.
Moody´s took selective rating actions on the following transactions:
Issuer: HSBC México -- HSBCCB 07
HSBCCB 07, Upgraded to A3 (sf) from Baa1 (Global Scale, Local
Currency); and previously on April 5, 2007 assigned a Baa1
(sf)
HSBCCB 07, Affirmed at Aaa.mx (sf) (National Scale);
and previously on April 5, 2007 assigned a Aaa.mx (sf)
Issuer: INFONAVIT - CEDEVIS 13U
Constancia Preferente, Upgraded to A3 (sf) from Baa3 (sf) (Global
Scale, Local Currency); and previously on January 22,
2013 assigned a Baa3 (sf)
Constancia Preferente, Upgraded to Aaa.mx (sf) from Aa2.mx
(sf) (National Scale); and previously on January 22, 2013 assigned
a Aa2.mx (sf)
Issuer: INFONAVIT CDVITOT 14U
CDVITOT 14-2U, Upgraded to A3 (sf) from Baa3 (sf) (Global
Scale, Local Currency); and previously on July 8, 2014
assigned a Baa3 (sf)
CDVITOT 14-2U, Upgraded to Aaa.mx (sf) from Aa2.mx
(sf) (National Scale); and previously on July 8, 2014 assigned
a Aa2.mx (sf)
Constancia Preferente, Upgraded to A3 (sf) from Baa3 (sf) (Global
Scale, Local Currency); and previously on July 8, 2014
assigned a Baa3 (sf)
Constancia Preferente, Upgraded to Aaa.mx (sf) from Aa2.mx
(sf) (National Scale); and previously on July 8, 2014 assigned
a Aa2.mx (sf)
FACTORS THAT WOULD LEAD TO AN UPGRADE OF DOWNGRADE OF THE RATINGS:
The NSRs would face upward or downward pressure if their corresponding
GSRs are upgraded or downgraded, unless this is in conjunction with
a sovereign rating action that results in another recalibration of the
Mexican national scale with an offsetting impact on NSRs. In addition,
the NSRs may be repositioned upwards (downwards) if Mexico's sovereign
is downgraded (upgraded) and the map is revised accordingly, but
the corresponding GSRs have not changed as a result of the sovereign action.
Because of the higher granularity of national scales, NSRs may also
face pressure due to changes in creditworthiness that are not sufficient
to cause a change in the corresponding GSR, measured using the same
methodologies used to determine the GSR.
Factors that would lead to a downgrade of the selective rating actions
are higher expected loss levels, the cash availability in the transaction
and deterioration of loss coverage.
Factors that would lead to an upgrade on the selective rating actions
are lower expected loss levels resulting from improved liquidity levels
and stronger portfolio performance.
METHODOLOGIES USED
Please refer to the following Excel file for further references regarding
the applicable rating methodology for each transaction http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF433962
The period of time covered in the financial information used to determine
Banorte - BNORTCB 07's rating is between December 31st,2009
and April 30th,2016 (source: periodic collections and remittances
reports sent by the servicers, trustees and common representative
agents).
The period of time covered in the financial information used to determine
Banorte - BNTECB 07 & BNTECB 07-2's rating is between
March 4th,2008 and May 4th,2016 (source: periodic collections
and remittances reports sent by the servicers, trustees and common
representative agents).
The period of time covered in the financial information used to determine
Hipotecaria Credito y Casa - CREYCB 06U & CREYCB 06-2U's
rating is between November 30th,2006 and April 30th,2016 (source:
periodic collections and remittances reports sent by the servicers,
trustees and common representative agents).
The period of time covered in the financial information used to determine
Hipotecaria Su Casita - BRHCCB08U, BRHCCB08-2U &
BRHCCB08-3U's rating is between April 30th,2008 and April
30th,2016 (source: periodic collections and remittances reports
sent by the servicers, trustees and common representative agents).
The period of time covered in the financial information used to determine
Hipotecaria Su Casita - BRHCGCB 04U's rating is between July 31st,2004
and April 30th,2016 (source: periodic collections and remittances
reports sent by the servicers, trustees and common representative
agents).
The period of time covered in the financial information used to determine
Hipotecaria Su Casita - BRHSCCB 05U's rating is between September
30th,2005 and April 30th,2016 (source: periodic collections
and remittances reports sent by the servicers, trustees and common
representative agents).
The period of time covered in the financial information used to determine
Hipotecaria Su Casita - BRHSCCB 06's rating is between March 31st,2006
and April 30th,2016 (source: periodic collections and remittances
reports sent by the servicers, trustees and common representative
agents).
The period of time covered in the financial information used to determine
Hipotecaria Su Casita - BRHSCCB 06-2 & BRHSCCB 06-3's
rating is between November 30th, 2006 and April 30th,2016
(source: periodic collections and remittances reports sent by the
servicers, trustees and common representative agents).
The period of time covered in the financial information used to determine
Hipotecaria Su Casita - BRHSCCB 06U & BRHSCCB 06-2U's
rating is between May 31st, 2006 and April 30th,2016 (source:
periodic collections and remittances reports sent by the servicers,
trustees and common representative agents).
The period of time covered in the financial information used to determine
Hipotecaria Su Casita - BRHSCCB 07 & BRHSCCB 07-2's
rating is between January 31st, 2007 and April 30th,2016 (source:
periodic collections and remittances reports sent by the servicers,
trustees and common representative agents).
The period of time covered in the financial information used to determine
HSBC Mexico - HSBCCB 07's rating is between February 20th,
2007 and April 30th,2016 (source: periodic collections and
remittances reports sent by the servicers, trustees and common representative
agents).
The period of time covered in the financial information used to determine
Metrofinanciera - METROCB 04U's rating is between December 12th,
2004 and March 3rd,2016 (source: periodic collections and
remittances reports sent by the servicers, trustees and common representative
agents).
The period of time covered in the financial information used to determine
Metrofinanciera - MFCB 05U's rating is between August 31st,
2005 and April 30th,2016 (source: periodic collections and
remittances reports sent by the servicers, trustees and common representative
agents).
The period of time covered in the financial information used to determine
Proyectos Adamantine - MXMACCB 05-2U's rating is between
November 11th, 2005 and April 30th,2016 (source: periodic
collections and remittances reports sent by the servicers, trustees
and common representative agents).
The period of time covered in the financial information used to determine
Proyectos Adamantine - MXMACCB 05U's rating is between July
31st, 2007 and April 4th,2016 (source: periodic collections
and remittances reports sent by the servicers, trustees and common
representative agents).
The period of time covered in the financial information used to determine
Infonavit - CDVITOT 14U's rating is between July 31st,
2014 and March 3rd, 2016 (source: periodic collections and
remittances reports sent by the servicers, trustees and common representative
agents).
The period of time covered in the financial information used to determine
Infonavit - CEDEVIS 13-U's rating is between April
20th, 2013 and March 31st, 2016 (source: periodic collections
and remittances reports sent by the servicers, trustees and common
representative agents).
The period of time covered in the financial information used to determine
Hipotecaria Su Casita - BRHCCB 07U, BRHCCB 07-2U &
BRHCCB 07-3U's rating is between October 31st, 2007
and April 30th, 2016 (source: periodic collections and remittances
reports sent by the servicers, trustees and common representative
agents).
The period of time covered in the financial information used to determine
Proyectos Adamantine - MXMACFW 07-3U & MXMACFW 07-4U's
rating is between July 31st, 2007 and April 30th, 2016 (source:
periodic collections and remittances reports sent by the servicers,
trustees and common representative agents).
The period of time covered in the financial information used to determine
Proyectos Adamantine - MXMACFW 07-5U & MXMACFW 07-6U's
rating is between September 30th, 2007 and April 30th, 2016
(source: periodic collections and remittances reports sent by the
servicers, trustees and common representative agents).
Moody's considered the servicers' practices and views them as adequate.
Moody's National Scale Credit Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within a country,
enabling market participants to better differentiate relative risks.
NSRs differ from Moody's global scale credit ratings in that they are
not globally comparable with the full universe of Moody's rated entities,
but only with NSRs for other rated debt issues and issuers within the
same country. NSRs are designated by a ".nn"
country modifier signifying the relevant country, as in ".za"
for South Africa. For further information on Moody's approach to
national scale credit ratings, please refer to Moody's Credit rating
Methodology published in May 2016 entitled "Mapping National Scale Ratings
from Global Scale Ratings". While NSRs have no inherent absolute
meaning in terms of default risk or expected loss, a historical
probability of default consistent with a given NSR can be inferred from
the GSR to which it maps back at that particular point in time.
For information on the historical default rates associated with different
global scale rating categories over different investment horizons,
please see https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_189530.
REGULATORY DISCLOSURES
Please click on this link http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF433962 for the List of Affected Credit Ratings. This list
is an integral part of this Press Release and provides, for each
of the credit ratings covered, Moody's disclosures on the
following items:
• Loss and Cash Flow Analysis
For further specification of Moody's key rating assumptions and sensitivity
analysis, see the sections Methodology Assumptions and Sensitivity
to Assumptions of the disclosure form.
In issuing and monitoring this rating, Moody's de México
S.A. de C.V. considered the existence and
extent of arrangements and mechanism, if any, to align the
incentives of the originator, servicer, administrator and
guarantor of the securities with those of its potential acquirers.
Credit ratings incorporate Moody's macroeconomic outlook and its implications
on key variables that may include but not be limited to interest rates,
inflation, economic growth, unemployment, performance
of counterparties, credit availability, sector level changes
in competitive conditions, supply/demand and margins, and
issuer specific changes in capital structure, competitive positioning,
governance, risk profile, and liquidity. Unexpected
changes in such variables may lead to changes in the credit rating level,
potentially by several notches. Further information on the sensitivity
of the rating to specific assumptions is included in this disclosure.
In issuing this credit opinion, Moody's de México S.A.
de C.V. did not rely on ratings issued by any other credit
rating agency over this issuer/security or any underlying securities.
Moody's did not use any stress scenario simulations in its analysis.
Information source used to prepare the rating is the following:
parties involved in the ratings.
The ratings have been disclosed to the rated entities prior to public
dissemination.
A general listing of the sources of information used in the rating process,
and the structure and voting process for the rating committees responsible
for the assignment and monitoring of ratings can be found in the Disclosure
tab in www.moodys.com.mx.
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating. For provisional
ratings, this announcement provides certain regulatory disclosures
in relation to the provisional rating assigned, and in relation
to a definitive rating that may be assigned subsequent to the final issuance
of the debt, in each case where the transaction structure and terms
have not changed prior to the assignment of the definitive rating in a
manner that would have affected the rating. For further information
please see the ratings tab on the issuer/entity page for the respective
issuer on www.moodys.com.mx.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
This Rating is subject to upgrade or downgrade based on future changes
in the financial condition of the Issuer/Security, and said modifications
will be made without Moody's de México S.A. de C.V
accepting any liability as a result.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com.mx,
for each of the ratings covered, Moody's disclosures on the
lead analyst and the Moody's legal entity that has issued the ratings.
Moody's considers the quality of information available on the rated entity,
obligation or credit satisfactory for the purposes of issuing a rating.
Moody's adopts all necessary measures so that the information it uses
in assigning a 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 Moody's Rating Symbols and Definitions on www.moodys.com.mx
for further information on the meaning of each rating category and the
definition of default and recovery.
Please see ratings tab on the issuer/entity page on www.moodys.com.mx
for the last rating action and the rating history. The date on
which some ratings were first released goes back to a time before Moody's
ratings were fully digitized and accurate data may not be available.
Consequently, Moody's provides a date that it believes is the most
reliable and accurate based on the information that is available to it.
Please see our website www.moodys.com.mx for further
information.
Please see www.moodys.com.mx for any updates on changes
to the lead rating analyst and to the Moody's legal entity that has issued
the rating.
The ratings issued by Moody's de Mexico are opinions regarding the credit
quality of securities and/or their issuers and not a recommendation to
invest in any such security and/or issuer.
Please see the ratings tab on the issuer/entity page on www.moodys.com.mx
for additional regulatory disclosures for each credit rating.
Gustavo Salaiz
Associate Analyst
Structured Finance Group
Moody's de Mexico S.A. de C.V
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000
Mexico
JOURNALISTS: 001-888-779-5833
SUBSCRIBERS:52-55-1253-5700
Martin Fernandez Romero
Senior Vice President/Manager
Structured Finance Group
JOURNALISTS: (800) 666 -3506
SUBSCRIBERS: (5411) 5129 2600
Releasing Office:
Moody's de Mexico S.A. de C.V
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000
Mexico
JOURNALISTS: 001-888-779-5833
SUBSCRIBERS:52-55-1253-5700
Moody's recalibrates Mexico's national rating scale, repositions national scale ratings and takes rating action on Mexican structured finance transactions
