Moody’s: Nafin unchanged on reopening

Moody’s Investors Service said the A3 long-term global local-currency senior debt ratings of Nacional Financiera, SNC, Institucion de Banca de Desarrollo’s (Nafin) two issuances of certificados bursatiles are unaffected by the announced reopening of the note issuances.

The Aaa.mx long term Mexican national scale senior debt ratings of these senior unsecured notes are similarly unaffected, the agency said.

The maturity will be about three years for NAFR 190417 tranche and about 10 years for the tranche NAFF 260925, Moody’s said.

The outlook is negative, in line with the outlook on Mexico’s A3 government bond rating, the agency said.

The ratings reflect the very high probability of support from the Mexican government to Nafin if needed, Moody’s said.

This support assumption provides four notches of uplift from Nafin’s Ba1 standalone baseline credit assessment, the agency explained.

Nafin’s baseline rating reflects its focus on on-lending through banks and other financial institutions, which helps limit asset risks, Moody’s said.

These credit strengths are balanced by Nafin’s limited business diversification and high reliance on market funding, which exposes it to higher refinancing and re-pricing risks, the agency said.

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