Moody’s assigns A3 to Yucatan loan

Moody’s Investors Service said it assigned Aaa.mx (Mexico national scale) and A3 (global scale, local currency) ratings to the state of Yucatan’s Ps. 2.6 billion enhanced loan from Banamex.

The loan is payable through a master trust (BBVA Bancomer as trustee), to which the state has pledged 13.5% of the flows and rights of its General Participations Fund, equivalent to 16.875% excluding the 20% of the Yucatan’s municipalities share.

The loan is denominated in Mexican pesos with a maturity of 20 years and will pay a variable interest rate equal to the 28-day Mexican interbank interest rate plus a spread. The loan has no grace period for principal payments.

The A3/Aaa.mx debt ratings reflect the underlying creditworthiness of Yucatan, which is rated Ba1/A1.mx, and supported by legal and credit enhancements embedded in the loan, the agency said.

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