Moody's gives Nafinsa bonds Aaa(mx)

Moody's Investors Service said it assigned ratings of provisional Aaa(mx) and provisional Baa1 to the proposed $1.3 billion Pesos bonds of the State of Chihuahua, which are being issued by Nacional Financiera SA (Nafinsa) as issuing trustee.

The agency said the bonds will be a direct and binding obligation of the trust and not of the state.

Bond proceeds will be used to refinance the entirety of the state's direct debt, Moody's noted.

Chihuahua's credit position is an important element in the bond ratings even if the bonds are not a general obligation of the state because the issuer ratings, in part, reflect the state's capacity to dedicate the amount of pledged revenues to the trust without compromising its operations as well as the likelihood that it is able to meet the responsibilities required under the credit contract or that it may trigger any of the events of acceleration in the transaction documents, Moody's added.

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