Moody's lowers Huixquilucan

Moody's Investors Service said it lowered the issuer ratings of the Municipality of Huixquilucan (State of Mexico) to Baa2.mx (Mexico national scale) and B1 (global scale, local currency) from Baa1.mx and Ba3, respectively.

The outlook is negative.

According to Moody's, the downgrade reflects continued deterioration of Huixquilucan's finances in 2004, when the municipality posted a financing deficit of 26.3% of total revenues, following another large financing deficit in 2003. The municipality's operating results also worsened - from an operating deficit of 9.1% of operating revenues in 2003 to a 19.7% shortfall in 2004.

As a result, Huixquilucan's liquidity position came under increasing strain - short-term liabilities exceeded cash and equivalents by an amount equal to three months of revenue by the end of 2004 - causing the municipality to borrow short-term for cash-flow purposes on a regular basis.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.