S&P affirms Aguascalientes

Standard & Poor's said it affirmed the mxAA national scale rating on the State of Aguascalientes, Mexico. The outlook is stable.

S&P said major credit strengths supporting the rating are a diversified economy, strong management polices, adequate financial performance and limited pension liabilities, given the state's approval of a pension reform.

Factors offsetting these credit strengths are increasing debt and the state's relatively low level of modifiable revenue, particularly as a result of the lack of a state payroll tax, which is the most important source of locally collected revenues for many Mexican states, S&P said.

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