Background on Infonavit and Its Importance
The National Housing Fund for Workers (Infonavit) is a Mexican government-run institution responsible for providing housing credit to workers. Established in 1974, Infonavit has played a crucial role in enabling millions of Mexicans to access homeownership. Under the leadership of Octavio Romero Oropeza, Infonavit has continued to strengthen its financial stability and expand its housing credit programs.
Moody’s Evaluation and Its Relevance
Moody’s Investors Service is a well-known credit rating agency that assesses the creditworthiness of various entities, including financial institutions like Infonavit. Moody’s Local México, a branch of Moody’s, had been evaluating Infonavit’s quality as a housing loan administrator. This evaluation was considered significant, as it reflected Infonavit’s capability to manage housing loans effectively.
Liquidation of Cedevis Emissions
In January 2023, Moody’s announced it would withdraw its evaluation of Infonavit’s quality as a housing loan administrator due to “business-related reasons.” This decision came after Infonavit decided to proceed with the early liquidation of two Cedevis (Certificados de Vivienda) emissions, initially planned for January 2026.
What are Cedevis?
Cedevis, or Certificados de Vivienda, are interest-bearing securities backed by home loans originated by Infonavit itself. These securities served as an alternative financing source for Infonavit when it faced liquidity issues before 2015. With the improvement in Infonavit’s financial standing, Cedevis emissions have become less critical for funding housing projects.
Infonavit’s Financial Stability and Future Plans
Infonavit’s financial strength has grown due to the salary policy initiated during the previous administration. As a result, Infonavit can now liquidate its Cedevis emissions ahead of schedule. This financial stability allows Infonavit to focus on expanding its housing credit programs, such as the Vivienda para el Bienestar initiative, which aims to build one million and twenty thousand homes during the current administration.
Key Questions and Answers
- What is Infonavit? Infonavit is a Mexican government-run institution that provides housing credit to workers.
- What is Moody’s Local México? Moody’s Local México is a branch of Moody’s Investors Service that evaluates the creditworthiness of various entities, including financial institutions like Infonavit.
- What are Cedevis? Cedevis, or Certificados de Vivienda, are interest-bearing securities backed by home loans originated by Infonavit.
- Why did Moody’s withdraw its evaluation? Moody’s withdrew its evaluation due to business-related reasons, following Infonavit’s decision to liquidate Cedevis emissions ahead of schedule.
- How has Infonavit’s financial stability improved? Infonavit’s financial strength has grown due to the salary policy initiated during the previous administration, allowing it to liquidate Cedevis emissions early and focus on expanding housing credit programs.
