Moody's may cut Mexico loans

Moody's Investors Service said it placed the ratings of six enhanced loans of the Mexican states under review for possible downgrade.

Those ratings on review include the Baa2 and Aa2.mx ratings on the Ps. 250 million loan of the state of Guerrero, contracted with BBVA-Bancomer.

The Baa1 and Aa1.mx ratings on the Ps. 300 million loan of the state of Nayarit contracted with Banorte also are on downgrade review, along with the Baa2 and Aa2.mx ratings on the Ps. 300 million loan of the state of Quintana Roo contracted with Banamex.

The Baa2 and Aa1.mx ratings on the Ps. 449.9 million loan of the state of Tabasco contracted with Santander, also are on downgrade review, along with the Baa2 and Aa1.mx on the Ps. 3 billion loan of the state of Tabasco contracted with Banorte.

The agency also said it will review for downgrade the Baa1 and Aaa.mx ratings on the Ps. 2.4 billion bonds of the state of Nuevo Leon.

The possible downgrade reflects the presence of unmitigated cross-default clauses in the loan contracts, specifying that the non-payment of other debt gives the lender the right to trigger the early amortization of the enhanced loan, with the loan balance being due immediately, Moody's said/

These six loans represent only a small subset of the 71 loans rated in this sector, the agency said, the vast majority of which do not contain unmitigated cross default clauses.

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