Moody's rates Veracruz loans Aa2.mx, Baa3

Moody's Investors Service said it assigned provisional ratings of prospective Aa2.mx (Mexico national scale) and prospective Baa3 (global Scale, local currency) to the State of Veracruz bank loans of $2.25 billion pesos and $600 million pesos payable under Trust Agreement F/2000436-1.

Each loan is payable under a common trust agreement, established with Banco Santander Mexicano as trustee, and by a distinct loan agreement entered into with the respective lender bank.

Moody's said the ratings are based on the above-average credit standing of the state and the use of a trust agreement to provide a mechanism for loan payments and reliance on federal revenue participaciones as a payment source.

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