S&P lifts Guerrero to stable

Standard & Poor’s said it affirmed the mxBBB+ national scale rating on the state of Guerrero.

The agency also said it revised the outlook to stable from negative.

The outlook revision reflects an expectation that the federal government of Mexico should provide enough financial support to the state to ensure a balanced budget through 2015 and 2016, S&P said.

Guerrero’s debt is expected to remain low and its contingent liabilities will stay moderate during the next two years, the agency said.

The state’s very weak economy relative to the country overall and its very weak financial flexibility constrain the ratings, S&P said.

The ratings also reflect its low levels of transparency and the vulnerability of state institutions, the agency said, and its liquidity continues to be less than adequate.

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