S&P lowers Oaxaca to negative

Standard & Poor’s said it affirmed the long-term mxA- national scale issuer credit rating on the state of Oaxaca.

The agency also said it revised Oaxaca’s outlook to negative from stable.

The outlook revision is based on an expectation that Oaxaca’s budgetary performance will remain weak because it will likely post-deficit after capital expenditures of about 7% of its total revenues in 2015, S&P said.

This will undermine Oaxaca’s less than adequate liquidity and maintain its aggressive use of short-term debt, the agency said.

The ratings reflect the state’s moderate debt burden, which could increase, S&P added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.