Mexico, March 01, 2022 -- Moody's de México, S.A. de C.V.
("Moody´s") has withdrawn the ratings of Baa1 (sf) (Global Scale,
Local Currency) and Aaa.mx (sf) (National Scale of Mexico) assigned
to the certificates TFOVIS 12-4U of Fondo de la Vivienda del Instituto
de Seguridad y Servicios Sociales de los Trabajadores del Estado (Fovissste),
that were issued by HSBC México, S.A.,
Institución de Banca Múltiple, Grupo Financiero HSBC,
acting solely in its role as trustee.
The certificates were backed by a pool comprised of minimum wage-denominated,
fixed-rate, first-lien mortgage loans (RMBS) secured
by residential homes located in Mexico originated and serviced by Fovissste.
RATINGS RATIONALE
The ratings were withdrawn after the full amortization of the certificates
TFOVIS 12-4U for the amount of MXN 728,390,560.80
Mexican pesos on February 28, 2022.
The date of the last Credit Rating Action was 9 December 2021.
The period of time covered in the financial information used to determine
certificates TFOVIS 12-4U ratings is between October 31,
2012 and February 28, 2022 (source: periodic collection and
remittance reports sent by the servicer, trustee and common representative
agent).
RATING METHODOLOGY
The principal methodology used in these ratings was "Moody's Approach
to Rating RMBS Using the MILAN Framework" published in December 2020 and
available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1248130.
Alternatively, please see the Rating Methodologies page on www.moodys.com.mx
for a copy of this methodology.
The Spanish language version of the "Moody's Approach to Rating RMBS Using
the MILAN Framework"of December 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1248133
is the current version registered at the Comisión Nacional Bancaria
y de Valores ("CNBV") and, therefore, is the document
to be used in ratings assigned by Moody's de México, S.A.
de C.V. Institución Calificadora de Valores ("MDM").
The corresponding English language version of such methodology,
however, is already outdated for other jurisdictions and therefore
cannot be employed by MDM's affiliates for the assignment of ratings
of similar securities or entities in such other jurisdictions.
Other methodologies and factors that may have been considered for the
ratings can also be found at www.moodys.com.mx in
the Rating Methodologies sub-directory under the Research &
Ratings tab.
Further information on Moody's analysis of this transaction is available
on www.moodys.com.mx.
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_1280297.
REGULATORY DISCLOSURES
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.
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.
In issuing this credit rating, 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 models, or loss or cash flow analysis,
in its analysis.
Information sources used to prepare the ratings 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 entity 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 was 9 December 2021.
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.
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_1288235.
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.
Carlo Alexis Montoya Gonzalez
Associate Lead 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: 1 888 779 5833
Client Service: 1 212 553 1653
Daniela Jayesuria
Senior Vice President/Manager
Structured Finance Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
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
