Moody’s Cuts Mexico’s Atizapan’s Rating

Moody’s Mexico has downgraded the debt rating on a MXN430m enhanced loan of the Municipality of Atizapan to Baa2 from Baa3. The cut reflects the recent downgrade of the issuer rating to Ba2 from Ba1. This was because of deterioration in Atizapan’s financial performance, which Moody’s expects will increase the risk of the issuer. Credit culture risks, economic risks and underlying contract enforcement risks are higher, which could impact the loan performance in the future, says Moody’s.