Mexico, April 21, 2020 -- Moody's de México (Moody's) took the following actions today on
the issuer and debt ratings of Mexican states and municipalities and government
related issuers.
States: The baseline credit assessments (BCA), Global Scale
Ratings (GSR, local currency) and Mexico National Scale Ratings
(NSRs) of nine states were affirmed and their respective outlooks were
maintained. The BCA, GSR and NSR of 10 states were affirmed,
and the outlook was changed to negative from stable. Finally,
the BCA, GSR and NSR of one state was downgraded and the negative
outlook was maintained.
Municipalities: The BCAs, GSRs and NSRs of 18 municipalities
were affirmed with and the stable outlook was maintained. The BCA,
GSR and NSR of seven municipalities were affirmed and the outlook was
changed to negative from stable, while for one municipality the
BCA and GSR was affirmed but the NSR was downgraded and the outlook was
changed to negative from stable. In addition, the BCA,
GSR and NSR of two municipalities were downgraded and their outlooks were
changed to negative from stable. Finally, the BCA,
GSR and NSR of one municipality was affirmed and the outlook was changed
to stable from negative.
Government-related issuers: The GSRs and NSRs of two water
companies were affirmed and the outlooks were changed to negative from
stable. The BCA, GSR and NSR of one university was affirmed
and the stable outlook was maintained.
Enhanced loans: Moody's affirmed the GSRs and NSRs of 66 enhanced
loans, downgraded the GSRs and affirmed the NSRs of 17 enhanced
loans, and affirmed the GSRs and upgraded the NSRs of 15 loans.
In addition, the GSRs of the following loans of Ciudad de Mexico
(Mexico City) and Dexia Credito Local Mexico, S.A.
de C.V (Dexia) were downgraded and their negative outlooks were
maintained, while the NSRs were affirmed.
MXN 2.521 billion bond issuance (original face value) under the
program GDFCB10-2.
MXN 2.5 billion bond issuance (original face value) under the program
GDFECB12.
MXN 2.126 billion bond issuance (original face value) under the
program GDFECB13.
MXN 2.5 billion bond issuance (original face value) under the program
GDFECB 14.
MXN 1.382 billion bond issuance (original face value) under the
program GDFECB 15.
MXN 2.5 billion bond issuance (original face value) under the program
GDFECB 15-2.
MXN 1 billion bond issuance (original face value) under the program GCDMXCB
16V.
MXN 2 billion bond issuance (original face value) under the program GCDMXCB
17X
MXN 1.5 billion bond issuance (original face value) under the program
GCDMXCB 18V.
MXN 7 billion (original face value) securitization of a loan from Dexia
Credito Local Mexico, S.A. de C.V. to
Mexico City, Mexico CBPF48.
Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL422996
for the List of Affected Credit Ratings. This list is an integral
part of this Press Release and identifies each affected issuer.
Today's action follows Moody's rating action on April 17, 2020,
in which the agency downgraded Mexico's government bond rating to Baa1
from A3 and maintained the negative outlook. (For full details,
please see "Moody's downgrades Mexico's ratings to Baa1, maintains
negative outlook," https://www.moodys.com/research/Moodys-downgrades-Mexicos-ratings-to-Baa1-maintains-negative-outlook--PR_422013).
RATINGS RATIONALE
Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL422996
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:
• National Scale Ratings
RATING RATIONALE FOR MEXICO CITY AND DEXIA
Under the legal framework governing Mexico City, the Government
of Mexico is the direct obligor of all debt incurred by Mexico City.
Accordingly, the rating fully reflects the credit quality of the
Federal Government.
RATIONALE FOR STATES AND MUNICIPALITIES WITH AFFIRMED BCA AND RATINGS
AND MAINTAINED STABLE OUTLOOKS
The ratings affirmation and the maintained outlooks reflects Moody´s
expectations that revenue pressures will remain relatively contained for
these issuers in 2020 despite a sharp contraction in the national economy
as federal transfers, which account for more than half of total
revenue for Mexican municipalities and as much as 90% for states,
will remain broadly stable this year thanks to support from a contingency
fund (Fondo de Estabilización de los Ingresos de las Entidades
Federativas - FEIEF). Support from the FEIEF will prevent
a contraction in non-earmarked transfers (participaciones) this
year, and earmarked transfers will by law remain in line with the
2020 federal budget. In addition, dependence on oil revenue
among states and municipalities has declined in recent years, helping
limit exposure to the recent drop in petroleum prices. Meanwhile,
spending pressures will remain relatively contained as states and municipalities
have margin to adjust capital spending in 2020, while the Federal
Government will assume most responsibility for financing the public health
response to the COVID-19 pandemic. Finally, these
states and municipalities generally closed 2019 with stable credit metrics
and manageable liquidity pressures, which positions them relatively
well within their rating groups to confront economic stress in 2020.
Overall debt levels are manageable and these issuers have margin to contract
additional long-term financing to address spending needs without
weakening their credit profiles. At the same time, regulations
limit the amount of debt each issuer can contract in any given year,
which will keep any increase in leverage at manageable levels.
RATIONALE FOR STATES AND MUNICIPALITIES WITH AFFIRMED BCA, RATINGS
AND CHANGE IN OUTLOOK TO NEGATIVE
The affirmations and change in outlook to negative for these issuers reflect
the same aforementioned considerations in terms of revenue stability,
limited spending pressures and the capacity to contract new long-term
financing in 2020. However, this group of states and municipalities
generally have more limited regional and local economies, lower
own-source revenues and weaker liquidity positions, which
limits their flexibility to manage the economic shock projected in 2020.
For the States of Guanajuato and Querétaro and the municipalities
of Corregidora and Querétaro, the change in outlook to negative
from stable reflects the action on the ratings of the Government of Mexico.
The Global Scale ratings of these four entities are at the same level
of the sovereign and their ratings are currently capped at the level of
the sovereign.
RATIONALE FOR THE DOWNGRADE OF THE BCA AND RATINGS OF THE STATE OF NAYARIT
WITH A NEGATIVE OUTLOOK
The downgrade in the BCA to b1 from ba3 and in the GSR and NSR to B1/Baa3.mx
from Ba3/Baa1.mx and the decision to maintain the negative outlook
reflects Nayarit's recurring gross operating deficits combined with
its weak liquidity and frequent use of short-term loans to bridge
cash needs. The state's ratio of cash to current liabilities
fell to a very low 0.03x in 2018 and 2019, leaving the state
with little margin to confront an unexpected shock. Nayarit's
relatively limited economic base and its low own-source revenue
will also weigh on its financial flexibility amid the current economic
downturn.
RATIONALE FOR THE AFFIRMATION OF THE BCA AND RATINGS OF THE STATES OF
CHIAPAS AND TABASCO AND THE MAINTENANCE OF THE NEGATIVE OUTLOOKS
While Chiapas's ratings had a negative outlook prior to today's
action the state's BCA of ba2 and GSR and NSR of Ba2/A2.mx
were affirmed to reflect the marked improvement in the state's operating
balances and liquidity observed in 2019. Through cost controls
Chiapas increased its operating surplus to 7.3% of operating
revenues in 2019 from 0.6% the previous year, supporting
a rise in its cash/current liabilities to a strong 1.5x.
The negative outlook was however maintained reflecting the state's
potential vulnerability to rising economic risks, given its relatively
narrow economy and low own-source revenues.
For Tabasco, the affirmation of the BCA at ba2 and of the GSR and
NSR at Ba2/A2.mx reflects the recent reversal of the financial
deterioration the state faced in 2017-2018. While Tabasco
faces some challenges as an oil producing state, in 2019 preliminary
results show a low cash financing requirement of -0.2%
of total revenues. Liquidity has improved and while it contracted
short-term debt at the end of 2019, debt levels are low compared
to peers with a net direct and indirect debt of 27% of operating
revenues. The negative outlook was maintained and reflects the
state's challenges to contain a financial deterioration in 2020-21
given the economic downturn and its concentration of the economy in the
oil sector.
RATIONALE FOR THE DOWNGRADE OF THE BCA AND RATINGS AND THE CHANGE OF OUTLOOK
TO NEGATIVE FOR THE MUNICIPALITIES OF CENTRO (VILLAHERMOSA) AND TOLUCA
The downgrade of Centro´s BCA to b1 from ba3 and the GSR and NSR
to B1/Baa2.mx from Ba3/A3.mx, as well as the change
in the outlook to negative from stable reflect the continued deterioration
of the municipality's operating and financial balances and liquidity to
levels that are below Ba3 rated Mexican municipalities. In addition,
own source revenues are low thanks to a recession in the local economy
in recent years. The negative outlook reflects Moody's expectation
that the municipality will be more affected by the economic slowdown caused
by the COVID-19 pandemic and lower oil prices in 2020-21
compared with other municipalities, given its relatively weak key
financial indicators and its high economic concentration in the oil sector.
The downgrade of Toluca´s BCA to ba2 from ba1 and the GSR and NSR
to Ba2/A2.mx from Ba1/A1.mx, as well as the change
in the outlook to negative from stable reflect a fast deterioration of
the municipality's operating balances, cash financing balances and
liquidity in 2019, mainly triggered by an increase of 26.2%
in operating expenditure compared with 6% growth in operating revenues.
Toluca's key financial metrics are at five-year lows and
are weaker than those of other Mexican peers rated at Ba1. The
Ba2 ratings also reflect the municipality's low debt levels,
notwithstanding the new debt it plans to acquire to finance a lighting
project. Nonetheless, Moody´s will continue to monitor
the final terms and conditions of this project to asses it's impact
on the municipality's credit profile. The negative outlook reflects
Moody's expectation of a further deterioration in the operating
and financial balances as well as liquidity in the next 18 months given
the lower revenues expected in 2020 as a result of the economic contraction,
coupled with our expectations that pressures on operating expenditure
will continue.
RATIONALE FOR THE AFFIRMATION OF THE BCA AND RATINGS OF THE MUNICIPALITY
OF ZAPOPAN AND THE CHANGE IN OUTLOOK TO STABLE FROM NEGATIVE
The affirmation of the Municipality of Zapopan's BCA at baa3 and
of the GRS and NSR at Baa3/Aa3.mx as well as and the change in
the outlook to stable from negative reflects primarily a strong improvement
in liquidity observed in 2019, effectively resolving an issue that
had been a key driver behind the negative outlook. Zapopan's
cash/current liabilities rose to a strong 1.4x in 2019 from 0.3x
the previous year, an improvement made possible by a strong 19.3%
gross operating surplus last year. Zapopan's high own-source
revenues and new long-term financing already secured for 2020 will
give it flexibility to manage the economic downturn.
RATIONALE FOR THE BENEMÉRITA UNIVERSIDAD AUTÓNOMA DE PUEBLA
The affirmation of the BCA at ba1 and ratings affirmation at Baa3/Aa3.mx
and the maintained stable outlook for the Benemérita Universidad
Autónoma de Puebla reflect the affirmation of the ratings and outlook
of its supporting government, the state of Puebla (Baa3/Aa3.mx
stable).
RATIONALE FOR THE TWO WATER COMPANIES
The decision to affirm the GSR and NSR for the water companies Aguas del
Municipio de Durango (AMD) at Ba2/A2.mx and CAPAMA at B3/B1.mx
and to change the outlook for both to negative from stable reflects the
affirmation of the ratings and the change in outlooks of their support
providers. These water companies have strong linkages with their
support providers: the Municipality of Durango (Ba2/A2.mx
negative) in the case of AMD and the State of Guerrero (Ba2/A2.mx
negative) and the Municipality of Acapulco in the case of CAPAMA.
RATIONALE FOR ENHANCED LOANS
The affirmation of the GSRs and NSRs of 66 enhanced loans reflects the
affirmation of the corresponding issuer ratings, with the exception
of the enhanced loans of the State of Nayarit. In the latter case,
the GSRs and NSRs were affirmed despite the downgrade of the issuer's
ratings because the trust structure under which these loans were issued
includes an irrevocable mandate as an additional enhancement. The
mandate is signed by the State of Nayarit and Federal Government as well
as the lenders, and ensures that the Ministry of Finance will transfer
Nayarit's pledged General Participations Fund revenue directly to the
paying trust even if Nayarit unilaterally tries to alter the agreements.
The paying trust structure provides a level of insulation between the
loan and the issuer's idiosyncratic risks.
For the 17 loans in which the GSR was downgraded but the NSR was affirmed,
the action reflects the downgrade of the sovereign as these loan ratings
are capped at the level of the sovereign. Meanwhile, the
affirmation of the GSRs and the upgrade of the NSRs to Aaa.mx for
15 loans reflects primarily the recalibration of the Mexico national scale
following the recent sovereign action, as well as these loans'
relatively strong positioning compared to national peers, with very
strong trust structures and debt service coverage ratios.
Under Moody's methodology for enhanced loans issued by Mexican states
and municipalities, issuer ratings are the starting point to assign
debt ratings (consult the methodology: Enhanced Municipal and State
Loans in Mexico Methodology published May 2019, https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1157935).
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS
Environmental risks are not material to Mexican RLGs' credit profiles
in general. Social risks are material to a handful of Mexican RLGs'
credit profiles. While certain states and municipalities have high
levels of economic development and healthy social indicators, other
RLGs report high levels of poverty and informality, high levels
of violence and poor access to basic services. While RLGs regularly
receive earmarked transfers from the federal government to address these
social needs, weak levels of social and economic development nevertheless
limit own-source revenue. Several Mexican RLGs also face
pressures related to large unfunded pension liabilities. In addition,
the coronavirus outbreak represents a social risk for Mexican RLGs given
the potentially significant impact on public health as well as the related
negative economic shock. Finally, Governance considerations
are material to Mexican RLGs' credit profiles. While most
RLGs generally follow guidelines and practices set out by the institutional
framework for all states and municipalities, some issuers demonstrate
poor planning and budgeting, which is reflected in their recurring
deficits and weak liquidity. In addition, we view the coronavirus
outbreak as a social risk, given the substantial implications for
public health and safety and the risk of a continued spread of the outbreak
within each RLG.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Further deterioration in the sovereign environment, expectations
of weaker economic growth or any other event resulting in a downgrade
of the bond rating of the government of Mexico would exert negative pressure
on the sub-sovereign sector as a whole and would likely prompt
the rating agency to review all current ratings and outlooks.
Given the negative outlook on Mexico's sovereign bond rating, Moody's
does not expect an upgrade on Mexico's City's debt ratings nor on
the GSR of the States of Guanajuato, Queretaro and the municipalities
of Corregidora and Queretaro. However, an upgrade or downgrade
on Mexico's ratings will exert upward or downward pressure on Mexico's
City's debt ratings and on the issuer ratings of these states and
municipalities.
An improvement of the financial and debt metrics of states and municipalities
could exert upward pressure on their ratings. Conversely,
a deterioration of the financial and debt metrics of states, municipalities
and the public university could exert downward pressure on their ratings.
Given the strong financial linkages between the two water companies and
the public university and their respective support providers, an
upgrade/downgrade of the support providers' ratings could result in an
upgrade/downgrade of the issuer ratings of the water companies and the
university.
Given the links between the loans and the credit quality of the obligors,
an upgrade/downgrade of the issuer ratings could exert upward/downward
pressure on the debt ratings of the enhanced loans. Also,
if debt service coverage metrics improve or fall materially above or below
Moody's expectations, the ratings could face upward/downward pressure.
For enhanced loans rated at the country ceiling of Baa1 on the global
scale, the ratings could be downgraded if the sovereign rating is
downgraded.
The principal methodology used in rating the Mexico RLGs' issuer ratings
was Regional and Local Governments published in January 2018 and available
at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1091595.
The principal methodologies used in rating the Enhanced Loans were Enhanced
Municipal and State Loans in Mexico Methodology published in May 2019
and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1157935
and Regional and Local Governments published in January 2018 and available
at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1091595.
The principal methodology used in rating the GRI's was Government-Related
Issuers published in June 2018 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1104983.
The principal methodologies used in rating Benemerita Universidad Autonoma
de Puebla were Higher Education published in May 2019 and available at
https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBM_1175020,
and Government-Related Issuers published in June 2018 and available
at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1104983.
Alternatively, please see the Rating Methodologies page on www.moodys.com.mx
for a copy of these methodologies.
The English version of the Government-Related Issuers Methodology
available at the above link is outdated for all jurisdictions, except
for Mexico.
The period of time covered in the financial information used to determine
state, municipality, water company and public university ratings
is between 01/01/2015 and 12/31/2019 (source: financial statements).
The period of time covered in the financial information used to determine
enhanced loan ratings is between 01/01/2015 and 12/31/2019 (source:
financial statements).
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_1216309.
REGULATORY DISCLOSURES
The List of Affected Credit Ratings includes additional disclosures that
vary with regard to some of the ratings. Please click on this link
https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL422996
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:
• Releasing Office
For further specification of Moody's key rating assumptions and sensitivity
analysis, see the sections Methodology Assumptions and Sensitivity
to Assumptions in the disclosure form. Moody's Rating Symbols and
Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.
Information sources used to prepare the rating are the following:
parties involved in the ratings, public information, and confidential
and proprietary Moody's information.
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.
The date of the last Credit Rating Action for Acolman, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Aguas del Municipio de Durango
was 07/06/2019
The date of the last Credit Rating Action for Benemerita Universidad Autonoma
de Puebla was 07/06/2019
The date of the last Credit Rating Action for Benito Juarez (Cancun),
Municipality of was 29/10/2019
The date of the last Credit Rating Action for CAPAMA was 07/06/2019
The date of the last Credit Rating Action for Centro, Municipality
of (Villahermosa) was 07/06/2019
The date of the last Credit Rating Action for Chiapas, State of
was 07/06/2019
The date of the last Credit Rating Action for Chihuahua, State of
was 27/03/2020
The date of the last Credit Rating Action for Ciudad de Mexico was 27/09/2019
The date of the last Credit Rating Action for Coatzacoalcos, Municipality
of was 25/07/2019
The date of the last Credit Rating Action for Corregidora, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Culiacan, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Dexia Credito Local Mexico,
S.A. de C.V. was 07/06/2019
The date of the last Credit Rating Action for Durango, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Ecatepec de Morelos,
Municipality of was 07/06/2019
The date of the last Credit Rating Action for Guadalupe, Municipality
of was 01/04/2020
The date of the last Credit Rating Action for Guanajuato, State
of was 07/06/2019
The date of the last Credit Rating Action for Guasave, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Guerrero, State of
was 07/06/2019
The date of the last Credit Rating Action for Hidalgo, State of
was 18/12/2019
The date of the last Credit Rating Action for Ixtapaluca, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Jalisco, State of
was 25/02/2020
The date of the last Credit Rating Action for Lazaro Cardenas, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Leon, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Merida, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Mexico, State of was
07/06/2019
The date of the last Credit Rating Action for Nayarit, State of
was 28/01/2020
The date of the last Credit Rating Action for Nicolas Romero, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Nuevo Leon, State
of was 19/09/2019
The date of the last Credit Rating Action for Oaxaca de Juarez,
Municipality of was 07/06/2019
The date of the last Credit Rating Action for Oaxaca, State of was
07/06/2019
The date of the last Credit Rating Action for Puebla, State of was
07/06/2019
The date of the last Credit Rating Action for Queretaro, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Queretaro, State of
was 07/06/2019
The date of the last Credit Rating Action for Ramos Arizpe, Municipality
of was 17/09/2019
The date of the last Credit Rating Action for Reynosa, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for San Luis Rio Colorado,
Municipality of was 07/06/2019
The date of the last Credit Rating Action for Sinaloa, State of
was 07/06/2019
The date of the last Credit Rating Action for Sonora, State of was
07/06/2019
The date of the last Credit Rating Action for Tabasco, State of
was 07/06/2019
The date of the last Credit Rating Action for Tamaulipas, State
of was 07/06/2019
The date of the last Credit Rating Action for Tecamac, Municipality
of was 15/08/2019
The date of the last Credit Rating Action for Tlalnepantla, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Tlaquepaque, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Tlaxcala, State of
was 07/06/2019
The date of the last Credit Rating Action for Toluca, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Tuxpan, Municipality
of (VeraCruz) was 11/12/2019
The date of the last Credit Rating Action for Veracruz, State of
was 07/04/2020
The date of the last Credit Rating Action for Yucatan, State of
was 23/12/2019
The date of the last Credit Rating Action for Zacatecas, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Zacatecas, State of
was 07/06/2019
The date of the last Credit Rating Action for Zapopan, Municipality
of was 07/06/2019
The date of the last Credit Rating Action for Zapotlan el Grande,
Municipality of was 07/06/2019
The date of the last Credit Rating Action for Zitacuaro, Municipality
of was 07/06/2019
For ratings issued on a program, series, category/class of
debt or security this announcement provides certain regulatory disclosures
in relation to each rating of a subsequently issued bond or note of the
same series, category/class of debt, security 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 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 credit 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.
Moody's general principles for assessing environmental, social
and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.
At least one ESG consideration was material to the credit rating action(s)
announced and described above.
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 rating 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.
Matthew Walter
Asst Vice President - Analyst
Sub-Sovereign 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: 1 888 779 5833
Client Service: 1 212 553 1653
Yves Lemay
MD - Sovereign Risk
Sub-Sovereign Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
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: 1 888 779 5833
Client Service: 1 212 553 1653
