S&P revises views on four Mexican governments to negative

S&P revised the outlooks and affirmed its mxAA+ national scale rating on the state of Aguascalientes, and its long-term BBB global scale and mxAA+ national scale ratings on the state of Guanajuato, the state of Queretaro, and the city of Queretaro.

“We revised the outlook on the ratings on the three states to negative from stable. We also revised the global scale outlook on the city of Queretaro to negative, while keeping the stable outlook on the national scale rating,” the agency said in a press release.

“The negative outlook indicates an at least one-in-three possibility that we could lower the ratings over the coming 12-24 months if we downgraded the sovereign,” S&P said.

The stable outlook on the national scale rating on the city reflects the opinion that over the next 12-24 months the Queretaro could maintain a robust budgetary performance, which would benefit from a larger portion of own-source revenues (67% of total revenues) compared to the three states (about 12% of total revenues), S&P said.

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