S&P raises Hidalgo

Standard & Poor's said it raised its national-scale rating on the State of Hidalgo, United Mexican States, to mxA from mxA-.

The outlook is stable.

The agency said that the upgrade stems from the improvement in Hidalgo's debt profile as a result of a new scheme created for the state to manage its own debt and its municipalities' debt if they want to issue debt in the future.

Hidalgo's debt service will decrease significantly over the next two years given the grace period involved and S&P said it expects it to remain manageable afterwards until debt maturity.

S&P noted that the upgrade also is supported by sound administrative policies and a still-strong budgetary performance.

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