Moody's cuts Nuevo Leon

Moody's de Mexico said it downgraded the issuer ratings of the State of Nuevo Leon to A2.mx (Mexico national scale) and to Ba2 (global scale, local currency) from A1.mx and Ba1 respectively.

The outlook remains negative.

At the same time, Moody's downgraded Nuevo Leon's debt ratings of the Ps. 2.42 billion (original face value) bonds to Aa2.mx and Baa3 from Aa1.mx and Baa2, respectively.

In addition, Moody's downgraded two enhanced loans contracted by the State of Nuevo Leon to Aa3.mx and Baa3 from Aa2.mx and Baa2, respectively: Ps. 1.6 billion (original face value) from Banobras, and Ps. 1.5 billion (original face value) from Bajio.

Moody's said the downgrade to Ba2/A2.mx from Ba1/A1.mx reflects the persistent recording of cash financing requirements and the state's high debt levels.

© 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.