S&P affirms Durango, ups outlook to stable

Standard & Poor's said it affirmed its mxA- national-scale rating on the State of Durango, United Mexican States and revised its outlook on the rating to stable from negative.

The outlook change is based upon the recovery of the state's budgetary performance resulting from improvement in the collection of own-source revenue and a growth trend in federal transfers, S&P noted.

The agency said that the rating reflects the following strengths: good managerial practices, which have allowed a significant recovery in budgetary performance; a relatively diversified economy, which has outgrown the country's average over the past few years; and recently refinanced debt, which provides for low debt service.

Factors that somewhat offset these strengths include limited financial flexibility, common under the National System of Fiscal Coordination, and the need for a pension reform, S&P added.

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