S&P lowers Quintana Roo view to negative

S&P said it revised the outlook on the state of Quintana Roo to negative from stable.

The agency also said it affirmed the state’s mxBBB long-term national scale issuer credit rating.

The outlook revision reflects that a potential downgrade could occur within the next 18 months if the state fails to improve its very weak budgetary performance, S&P said.

The negative outlook also considers the state's high debt burden, which is expected to be about 80% of its operating revenue for the next two years, the agency said.

Quintana Roo's liquidity position is considered weak and its budgetary flexibility is very weak, which constrains the ratings, S&P said.

Other rating factors include the state's moderate contingent liabilities and weak financial management amid the state's political transition and change of administration, which will occur in September 2016, the agency added.

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