Moody’s rates Tuxpan loans

Moody’s Investors Service said it assigned Ba3 ratings (global scale, local currency) and A3.mx (Mexico national scale) to four enhanced loans of the municipality of Tuxpan (Veracruz).

The Ba3/A3.mx debt ratings reflect the underlying creditworthiness of the Municipality of Tuxpan (Veracruz) (B1/Baa2.mx, stable), supported by legal and credit enhancements embedded in the loans, the agency said.

The loans are:

Ps. 11.4 million from Bansi (original face value) with a maturity of 8.25 years and a pledge of 1.5527% of the general fund of participations and the development municipal fund revenues as a guarantee and/or alternative source of payment.

Ps. 21.9 million from Bansi (original face value) with a maturity of 8.25 years and a pledge of 2.9266% of the general fund of participations and of the development municipal fund revenues, as a guarantee and/or alternative source of payment.

Ps. 53.6 million from Bansi (original face value) with a maturity of 8.25 years and a pledge of 7.2800% of the general fund of participations and of the development municipal fund revenues, as a guarantee and/or alternative source of payment.

Ps. 78.8 million from Bansi (original face value) with a maturity of 8.25 years and a pledge of 10.6954% of the general fund of participations and of the development municipal fund revenues, as a guarantee and/or alternative source of payment.

The loans are paid through a bank account in which Tuxpan transfers its revenues and through a guarantee and source of payment trust with Bansi 2913-8 as trustee to which the municipality has pledged the flows and rights of its general participations fund and of the development municipal fund revenues, that will be used to pay debt service to make up for any shortfall in Tuxpan's own source revenues.

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