S&P affirms Yucatan

Standard & Poor's said it affirmed its mxA national scale rating on the State of Yucatan, United Mexican States.

The outlook remains stable.

S&P said the rating on Yucatan is supported by an adequate budgetary performance, with operating balances that have averaged 7.7% of operating revenue in the last three years; conservative management policies, which include third-party audits and actuarial valuations for pension liabilities; and a low debt burden compared with national and international standards, but it could increase in the next few years.

S&P said the ratings are constrained by Yucatan's below-average gross state product per capita and high poverty index; limited financial flexibility, exacerbated by the state's high social and infrastructure needs; and sizable unfunded pension liability.

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