Rating action affects approximately US $405 million of debt outstandingMexico, August 16, 2013 -- Moody's Investors Service has downgraded the rating on Inversiones Alsacia to B2 from Ba3. At the same time, the rating is placed on review for further downgrade. The downgrade reflects the project's poor financial performance and increased instability as evidenced by: a) failure to maintain a minimum Debt Service Coverage Ratio of 1.1x , which could trigger Early Amortization, b) failure to meet the required balance on the O&M account , which could trigger an Event of Default, and c) draws on the debt service reserve fund which has left the account underfunded, increasingly exposing the transaction to a potential default. The issuer is seeking a waiver from bondholders on the breached covenants, which is expected to be obtained in the next few days. The review for downgrade will focus on the ability of Alsacia to successfully obtain this waiver and on updated cashflow projections over the next six months. The rating review will be concluded expeditiously.

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