State of Mexico Gets Upgrade, Expected to Issue

Moody’s has upgraded the local rating of the State of Mexico to A3.mx from Baa1.mx and a bond issue is anticipated soon. The state’s global scale rating remains at Ba3 but the outlook has been changed to positive from stable, the agency states. “The change in the national scale rating and the outlook for the global scale rating stems from the state’s positive trends in its debt and financial indicators, and the expectation that these trends will continue,” Moody’s says. The state is heard lining up a large MXP 30-year fixed rate issue with a partial guarantee from Banobras. Proceeds are destined to restructure debt and a transaction is expected this month.