Fitch places CDP's AA-(mex) rating under observation

Fitch has placed its AA-(mex) rating under observation for an issue of stock certificates of Mexican water sanitation company Construcciones y Drenajes Profundos (CDP) worth 228mn pesos (US$20.6mn), the ratings agency said. CDP was founded to build and operate a project designed to conduct rainwater and wastewater drainage in the Tlalnepantla de Baz municipality, in Mexico state. The current rating reflects CDP's very high credit quality, especially compared to like companies that have issued similar stock certificates, Fitch said. However, placing the rating under observation indicates that a developing event may affect the rating. Tlalnepantla municipality is experiencing reduced income as it and municipal water utility OPDM are behind in payments from another loan. As such, income from water services has been suspended, which may affect the city's payments to CDP. CDP principally uses income from its drainage services to pay off its obligations. To read Fitch's full report in Spanish, paste the following link into your browser: http://www.bnamericas.com/rc_search_detail.xsql?id_documento=65099&Tx_idioma=E