Moody’s lowers Coatzacoalcos

Moody's Investors Service said it downgraded the municipality of Coatzacoalcos to B2/Ba1.mx from B1/Baa3.mx.

The agency also said it revised the outlook to negative.

This downgrades conclude a review for downgrade that began in July when Coatzacoalcos presented a missed payment on a factoring facility with Santander Bank for Ps.20 million and considered the settlement of total due amounts in Aug. 22, Moody’s said.

The downgrades reflect ongoing weak liquidity and expected growth in expenditures related to the change in administration, which will exert significant pressure on finances over the next 18 months, the agency said.

The municipality will continue to face challenges to record balanced financial results and that liquidity will remain extremely tight, Moody’s said.

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