The Mexican state of Oaxaca will come to market this year with a securitization of federal co-participation revenue, the standard asset for sub-sovereign issuers. The issuer has registered a Ps250 million (US$22 million) program with regulators that might be issued in a single tranche. The preliminary prospectus has the maturity at six years, shorter than most deals executed in the sector over the last two years. Local brokerage Interacciones is leading the transaction, with Valencia de Toro providing legal counsel. The deal follows the structure of other federal participation transactions, a staple of the country's securitization market.

Standard & Poor's and Moody's Investors Service will rate the transaction. Proceeds will go to public works. The latest rating from the latter agency has the state at A3.mx' on the national scale and at Ba3' on the local currency, global scale. Reports on the transaction are forthcoming from Moody's and S&P.

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