Moody's: Guerrero view stable

Moody's de Mexico said it revised the outlook on the State of Guerrero's issuer ratings of Ba2 on the global scale and A2.mx on the Mexico national scale to stable from positive.

Moody's said the outlook change reflects that the State of Guerrero has yet to address its main credit challenges.

Limited by its narrow economy, Moody's said Guerrero continues to post weak own-source revenues, which, in 2010, represented 3.8% of total revenues, a very low level.

"The state's high unfunded pension liabilities, equivalent to roughly 115% of its 2010 revenues, remain a significant weakness that the administration has to tackle by reforming its pension system," Moody's analyst Adrian Garza said in a news release.

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