Moody's gives Benito Juarez loans A1.mx, Ba1

Moody's Investors Service said it assigned ratings of A1.mx and Ba1 (global-scale, local currency) to the two restructured bank loans of the Municipality of Benito Juarez (Cancun).

The modified loan agreements with the original lenders, Banobras and Banorte, were signed last month and maintain most of the original features of the documents signed in December 2005, with a few modifications including, a reduction in interest rate, a reduction in the reserve fund and a reduction in the percentage of federal participaciones pledged by the State of Quintana Roo to the Alternative Trust for payment on the loans should this support be necessary, the agency noted.

On the whole, Moody's said that the credit quality of the loans remains at the same level as the previous loan agreements, in great part due to the improved credit quality of the issuer which was recently upgraded to Baa2.mx and B1 (global Scale, local currency) from Ba2.mx/B2.

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