Introduction
HR Ratings, a prominent credit rating agency, has assigned an HR AAA (E) rating with a Stable Outlook to six bank loans contracted by the Mexican state of Durango. These loans were issued with Banorte, BBVA, Santander, and Multiva, backed by Durango’s General Participation Fund.
The Loans and Issuing Banks
HR Ratings reported that it granted the HR AAA (E) rating with a Stable Outlook to six structured bank loans contracted by the Durango state with Banorte, BBVA, Santander, and Multiva.
- Banorte: 1,900 million pesos
- BBVA: 1,500 million pesos
- Santander: Three operations totaling 3,200 million pesos (1,100 million pesos, 1,000 million pesos, and another 1,000 million pesos)
- Multiva: 474.5 million pesos
All loans were signed in 2025.
Credit Analysis
The credit rating agency determined the allocation based on the outcome of the Target Stress Rate (TSR) obtained from the quantitative analysis of each loan, which ranged between 88.2% and 88.8%.
The primary source of payment for these loans is Durango’s General Participation Fund (FGP), which accumulated 9,836.9 million pesos from January to August 2025, marking a 19.3% increase compared to the same period in 2024. HR Ratings estimates that the FGP will reach 13,585.7 million pesos by year-end, reflecting a nominal annual growth of 15.7%.
Ordinary interests are calculated on outstanding balances based on the Compounded 28-Day Interbank Lending Rate (TIIEFCAD28) plus a margin linked to the credit rating’s risk level. HR Ratings anticipates that this rate will be around 7.3% by the end of 2025.
Loan Structures and Legal Validation
The loan structures include a Reserve Fund that must be maintained throughout the loans’ validity, with a balance equal to the debt service for the next three months. An external legal analysis confirmed that the loan documents and Fideicomiso F/851-029736 are valid, enforceable, and correctly instrumented.
Loan Refinancing
The funds obtained will be used for the total refinancing of six operations contracted between 2015 and 2023 with Santander, Banorte, BBVA, Bansí, and Multiva, amounting to a combined total of 7,785.5 million pesos.
Key Questions and Answers
- What is HR Ratings? HR Ratings is a credit rating agency that assesses the creditworthiness of debt issuers, such as corporations and governments.
- Which loans received the HR AAA (E) rating? Six bank loans contracted by the Durango state with Banorte, BBVA, Santander, and Multiva.
- What is the primary source of payment for these loans? The General Participation Fund (FGP) of the Durango state.
- What is the anticipated interest rate by the end of 2025? HR Ratings expects the interest rate to be around 7.3% by the end of 2025.
- How will the funds be used? The funds will be used for the total refinancing of six previous operations contracted between 2015 and 2023.
