S&P affirms Baja California

Standard & Poor's said it affirmed its mxAA- national-scale rating on the State of Baja California, United Mexican States (BBB/stable/A-3 foreign, A/stable/A-1 local currency sovereign credit ratings).

The outlook remains stable.

The agency noted that the rating is supported by Baja California's dynamic economy and its capacity to attract increasing levels of foreign direct investment, a positive impact on the state's 5% average annual economic growth rate and the state's ability to tap into its economic base, allowing it to reach higher-than-average levels of modifiable revenue.

Factors that offset these credit strengths include the need to continue investing in basic and security infrastructure, due to growing population demands and security issues in the U.S.-Mexico border and an unfunded pension liability that could impact the state's finances over the medium term, the agency added.

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