In a release Wednesday, Moody's Investors Service said that ABS loans taken out by Mexican sub-sovereigns held up well during the downturn despite a deterioration in the flows of the underlying receivables.

Participation transfers from the central government — the most common asset used to back these loans - slid 20% in nominal terms in 2009 as the economy shrank.

Between the second quarter of 2008 and the end of the first quarter of 2010, aggregate debt service coverage for these loans to states and municipalities averaged 5.7x, a figure the agency characterized as "robust."

Co-participation revenues also back securities placed by states and municipalities, though this sector has lacked vitality in the past several years.

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