Rating Action: Moody's withdraws the ratings of Certificados Bursátiles Fiduciarios CDVITOT 11-3U
Global Credit Research - 22 Jan 2021
Mexico, January 22, 2021 -- Moody's de México, S.A. de C.V. ("Moody´s") has withdrawn on January 22, 2021 the ratings of Baa1 (sf) (Global Scale, Local Currency) and Aaa.mx (sf) (National Scale of Mexico) assigned to the certificates CDVITOT 11-3U of Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Infonavit), that were issued by Nacional Financiera S.N.C., Institución de Banca de Desarrollo, acting solely in its role as trustee. Moody's also has withdrawn the ratings of Baa1 (sf) (Global Scale, Local Currency) and Aaa.mx (sf) (National Scale of Mexico) assigned to the Constancia Preferente.
RATINGS RATIONALE
Moody's has decided to withdraw the ratings for its own business reasons. Please refer to the Moody's de México Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.mx.
The certificates are backed by a securitized mortgage pool comprised of minimum wage-denominated, fix-rate, first-lien, mortgage loans secured by low-income houses located in Mexico originated and serviced by Infonavit.
The date of the last Credit Rating Action for certificates CDVITOT 11-3U was 23 April 2020.
The date of the last Credit Rating Action for Constancia Preferente was 23 April 2020.
The principal methodology used in these ratings was Moody's Approach to Rating RMBS Using the MILAN Framework published in May 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1228742. Alternatively, please see the Rating Methodologies page on www.moodys.com.mx for a copy of this methodology.
The Spanish language version of the Moody's Approach to Rating RMBS Using the MILAN Framework methodology of May 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1228956 is the current version registered at the Comisión Nacional Bancaria y de Valores ("CNBV") and, therefore, is the document to be used in ratings assigned by Moody's de México, S.A. de C.V. Institución Calificadora de Valores ("MDM"). The corresponding English language version of such methodology, however, is already outdated for other jurisdictions and therefore cannot be employed by MDM's affiliates for the assignment of ratings of similar securities or entities in such other jurisdictions.
The period of time covered in the financial information used to determine CDVITOT 11-3U and Constancia Preferente ratings is between 20 February 2012 and 20 December 2020 (source: periodic collection and remittance reports sent by the servicer, trustee and common representative agents).
Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons, please see https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1216309.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.
In issuing and monitoring this rating, Moody's de México S.A. de C.V. considered the existence and extent of arrangements and mechanism, if any, to align the incentives of the originator, servicer, administrator and guarantor of the securities with those of its potential acquirers.
In issuing this credit rating, Moody's de México S.A. de C.V. did not rely on ratings issued by any other credit rating agency over this issuer/security or any underlying securities.
Moody's did not use any models, or loss or cash flow analysis, in its analysis.
Information sources used to prepare the rating are the following: parties involved in the ratings, public information, and confidential and proprietary Moody's information.
A general listing of the sources of information used in the rating process, and the structure and voting process for the rating committees responsible for the assignment and monitoring of ratings can be found in the Disclosure tab in www.moodys.com.mx.
The date of the last Credit Rating Action was 23/4/20.
For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.mx.
For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.
Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.
Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.
Please see Moody's Rating Symbols and Definitions on www.moodys.com.mx for further information on the meaning of each rating category and the definition of default and recovery.
Please see ratings tab on the issuer/entity page on www.moodys.com.mx for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see our website www.moodys.com.mx for further information.
Please see www.moodys.com.mx for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
The ratings issued by Moody's de Mexico are opinions regarding the credit quality of securities and/or their issuers and not a recommendation to invest in any such security and/or issuer.
Please see the ratings tab on the issuer/entity page on www.moodys.com.mx for additional regulatory disclosures for each credit rating.
Rodrigo Granovsky Analyst Structured Finance Group Moody's de Mexico S.A. de C.V Ave. Paseo de las Palmas No. 405 - 502 Col. Lomas de Chapultepec Mexico, DF 11000 Mexico JOURNALISTS: 1 888 779 5833 Client Service: 1 212 553 1653 Daniela Jayesuria Senior Vice President/Manager Structured Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's de Mexico S.A. de C.V Ave. Paseo de las Palmas No. 405 - 502 Col. Lomas de Chapultepec Mexico, DF 11000 Mexico JOURNALISTS: 1 888 779 5833 Client Service: 1 212 553 1653
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