Moody's: Veracruz loan at Ba1

Moody's Investors Service said it assigned the State of Veracruz's Ps. 3 billion loan from Interacciones a Ba1 debt rating, and Moody's de Mexico assigned a A1.mx rating.

The ratings reflect the underlying creditworthiness of Veracruz, supported by the validity of the legal authorization of the transaction, strong trust structure and a solid level of reserve funds, Moody's said.

The ratings also consider the absence of adjustments to the state's fiscal policy framework, leading to higher than expected debt and further deterioration in liquidity, Moody's said.

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