S&P affirms Guerrero

Standard & Poor's said it affirmed its mxBBB+ national-scale rating on the State of Guerrero, United Mexican States, based upon the full faith and credit of the state.

The outlook remains stable.

The rating reflects adequate financial performance, with an operating surplus averaging 7% of

operating revenue over the past three years and improving management practices, which include an ongoing effort to reorganize, update and institutionalize state's systems and controls, and continuity in the availability of third-party external audits, the agency said.

Factors offsetting these credit strengths include high debt levels, mainly due to past obligations with the federal pension institute as well as a weak economic base with high social needs, which limits the state's financial flexibility, S&P added.

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