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Rating Action:

Moody's reviews the issuer and debt ratings of Mexican state and municipal governments and government related issuers

 The document has been translated in other languages

21 Apr 2020

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

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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.

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 credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

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