Moody's rates Nafin certificados A3

Moody's Investors Service said it assigned A3 and Aaa.mx long-term global local-currency and Mexican national scale senior unsecured debt ratings to Nacional Financiera, SNC, Institución de Banca de Desarrollo's (Nafin) new issuance of certificados bursátiles de Banca de Desarrollo (NAFR 17S).

The outlook is negative.

NAFR 17S will have a maturity of five years and a variable rate coupon, Moody's said.

The proceeds of the Ps. 4 billion issuance will be used to fund eligible social projects as defined in Nafin's offering memorandum or to invest in highly liquid assets before funding those projects, Moody's said.

Nafin's global scale rating is in line with Mexico's A3 sovereign rating and incorporates an assessment of a very high probability of support from the Mexican government in case of need, the agency said.

The ratings also reflect Nafin's status as an arm of the government with a public policy role to promote the development of Mexico's private sector, Moody's said.

These credit strengths are balanced by Nafin's limited business diversification and high reliance on market funding, which exposes it to higher refinancing and re-pricing risks, the agency said.

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