Moody's rates OPDM

Moody's de Mexico said it has assigned Baa1.mx and Ba3 (global scale, local currency) issuer ratings to OPDM de Tlalnepantla, the Tlalnepantla municipal water company.

Moody's said the ratings reflect the company's prosperous service area, with a diverse manufacturing base; its strengthened financial performance of recent years, made possible by substantial water rate increases which have also brought about, through tariff restructuring, reduced cross-subsidies among user classes; and its ownership by a municipal government committed to further financial and operating improvements.

The ratings also acknowledge OPDM's serious problems involving water losses and customer payment delinquencies; the narrow coverage of peak debt service requirements, with little safety margin, provided by the company's net revenues; and financial problems evident in OPDM's persistently high payables to major suppliers, despite its now-timely payments for recent purchases.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.