Moody's ups Mexicali to A3.mx

Moody's upgraded the national scale rating of the municipality of Mexicali to A3.mx from Baa1.mx. The local-currency rating remains at Ba3 with a stable outlook.

The change in the national scale rating stems from the municipality's record over the last two years of timely debt service payments, Moody's said.

The municipality continues to have outstanding liabilities with Instituto Mexicano del Seguro Social, the federal treasury and the state-owned water and sewer system that provides services in the Mexicali area, the agency said. All three of these have been under negotiation for some years and it appears that the municipality has come to an agreement that one of these liabilities will be paid by the end of the current year.

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