The ratification of the grade is based on budgetary discipline and the growth of its own income Fitch Ratings endorses the 'AAA', the highest rati
The ratification of the grade is based on budgetary discipline and the growth of its own income
Fitch Ratings endorses the ‘AAA’, the highest rating for Guanajuato, being the highest to which a subnational institution can access
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Guanajuato/Gto News
The international agency FitchRatings ratified Guanajuato’s ratings of ‘ AAA (mex) ‘ and ‘BBB-‘ on a national and international scale, respectively, both with a stable outlook. Additionally, it endorsed the individual credit profile at ‘a’.
Among the key factors highlighted by the rating agency in the annual evaluation it did on Guanajuato, the following stand out:
- In 2022, total income grew significantly, due to efforts to boost local income and its control and coordination policies
- Various fiscal reforms were implemented that strengthened fiscal autonomy and increased collection efficiency
- It has a prudent track record of budgeting and spending execution, reflecting a balanced operating structure
- Spending is countercyclical and focuses mainly on the health, education, public safety, and economic development sectors
- It has a moderate debt, which is mitigated by the solid liquidity position
- Its pension liabilities are not perceived as a contingency because the Guanajuato State Social Security Institute –ISSEG- has a long-term financial viability
- Liquidity policies and financial income flow exceeded the level of financial spending, even in the current context of high interest rates and new debt
In one week, Guanajuato managed to get two of the main international agencies, Moody’s Local Mexico and Fitch Ratings, to grant the highest rating grade that a Mexican State can have, which is an indicator of the strength and efficient administration of public finances.
With these results, the Secretary of Finance, Investment and Administration reaffirms the task of maintaining a technical, responsible and efficient management of the State Public Revenue Office.
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