Fitch: Oaxaca II & Oaxaca IV's Expected Ratings Not Impacted by Changes in Interest Rate Levels

MONTERREY, Mexico & NEW YORK--()--On July 16, 2012, Fitch Ratings indicated that it expects to assign 'BBB-' ratings to the senior unsecured notes due 2031 to be issued by CE Oaxaca Dos, S. de R.L. de C.V.'s (Oaxaca II) and CE Oaxaca Cuatro, S. de R.L. de C.V.'s (Oaxaca IV) with Stable Rating Outlooks.

Fitch has been notified of a meaningful increase in interest rates during pricing and that the sponsor plans to commensurately reduce debt for both projects to provide an equivalent level of financial margin that would be consistent with the ratings indicated. According to the information received, the bonds will have the following characteristics:

--US$148.5 million Oaxaca II notes at a 7.25% fixed interest rate.

--US$150.2 million Oaxaca IV notes at a 7.25% fixed interest rate.

Fitch has yet to be provided with executed closing documentation, but based on the information provided it is Fitch's opinion that the indicated changes in the interest rates and the debt amounts will not have a material impact on the coverage levels that were originally expected for both projects. Therefore, there is no impact on the expected ratings at this time.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:
--'Rating Criteria for Infrastructure and Project Finance' (July 12, 2012);
--'Rating Criteria for Onshore Wind Farm Projects' (April 16, 2012).

Applicable Criteria and Related Research:
Rating Criteria for Infrastructure and Project Finance
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=682867
Rating Criteria for Onshore Wind Farm Projects
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=675531

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Contacts

Fitch Ratings
Primary Analyst:
Astra Castillo, +52 (81) 8399-9100
Director
Fitch Mexico, S.A. de C.V.
Prol. Alfonso Reyes 2612, Edificio Connexity
Monterrey, N.L. 64920
or
Secondary Analyst:
Alberto Santos, +1-212-908-0714
Senior Director
or
Committee Chairperson:
Glaucia Calp, +57 (1) 326-9999
Senior Director
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst:
Astra Castillo, +52 (81) 8399-9100
Director
Fitch Mexico, S.A. de C.V.
Prol. Alfonso Reyes 2612, Edificio Connexity
Monterrey, N.L. 64920
or
Secondary Analyst:
Alberto Santos, +1-212-908-0714
Senior Director
or
Committee Chairperson:
Glaucia Calp, +57 (1) 326-9999
Senior Director
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com