S&P upgrades Queretaro

Standard & Poor’s said it raised the global scale rating on the city of Queretaro to BBB from BBB-.

The agency also said it affirmed the city’s mxAA+ national scale rating.

The outlook is stable.

The upgrade reflects the city’s sustained adequate liquidity, very low indebtedness and very strong budgetary performance, S&P said.

The ratings also are supported by its adequate revenue and expenditure policies, the agency said, and overall satisfactory financial management.

These financial strengths are expected to sustain Queretaro’s creditworthiness despite lower participaciones transfers during 2016, S&P added.

Queretaro’s main rating constraint is the volatile and unbalanced institutional framework for all Mexican cities, which limits the national scale rating, the agency said.

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