Moody's rates Oaxaca loan Baa2

Moody's Investors Service said it assigned a debt rating of Aa2.mx to an upcoming 250 million in Mexican pesos enhanced loan of the State of Oaxaca from Banorte. Moody's also said it assigned global scale local-currency debt rating of Baa2 to this loan.

The loan is payable through a trust to which the state has pledged the flows and rights to a portion of its federal participation revenues, Moody's said.

The ratings reflect the underlying creditworthiness of Oaxaca, supported by legal and credit enhancements embedded in the loan, including the validity of the legal authorization of the transaction and a strong trust structure.

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