MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it has affirmed its 'mxA' national scale rating on Mexican state of Yucatan with stable outlook.
The ratings agency said the rating is supported by low levels of direct debt and debt service, sound managerial and transparency practices, and an adequate budgetary performance.
Yucatan's direct debt levels and debt service remained low at the end of the second quarter of 2007, reaching 7.4 pct and 5.4 pct of budgeted discretionary revenue respectively, the ratings agency said.
'The stable outlook reflects S&P's expectation that the new administration will continue the healthy managerial practices already in place, including a prudent debt approach, and will be able to consolidate the improvement in its liquidity position,' S&P said.
The ratings agency said an improvement in financial flexibility, coupled with an increase in self-financed capital expenditure could have a positive impact on the rating.
However, a deterioration of the state's budgetary performance or the incurrence of an undue debt burden that pressures the state's finances could pressure the rating. TFN.newsdesk@thomson.com vsh/man COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
The ratings agency said the rating is supported by low levels of direct debt and debt service, sound managerial and transparency practices, and an adequate budgetary performance.
Yucatan's direct debt levels and debt service remained low at the end of the second quarter of 2007, reaching 7.4 pct and 5.4 pct of budgeted discretionary revenue respectively, the ratings agency said.
'The stable outlook reflects S&P's expectation that the new administration will continue the healthy managerial practices already in place, including a prudent debt approach, and will be able to consolidate the improvement in its liquidity position,' S&P said.
The ratings agency said an improvement in financial flexibility, coupled with an increase in self-financed capital expenditure could have a positive impact on the rating.
However, a deterioration of the state's budgetary performance or the incurrence of an undue debt burden that pressures the state's finances could pressure the rating. TFN.newsdesk@thomson.com vsh/man COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.