Despite debt, take good note – The Horizon (Record)

Although in the past six years the debt of the states doubled, rating agencies for the first half of 2015 positive valuations assigned and even improved some of them.

Debt states went from $ 252,000 million in 2009 to $ 510,000 million in the first quarter of 2015, according to a study by the Mexican Institute for Competitiveness (IMCO).

The Federal District which is the most indebted in the first quarter of 2015, was rated with the highest credit rating by Moody’s and Fitch Ratings.

While Nuevo Leon, whose debt soared in the current administration, She received for the first half of 2015 adequate credit quality by the four financial agencies: Fitch Ratings, Standard & amp; Poor’s, Moody’s, and HR Ratings.

Chihuahua with a debt balance of $ 41.300 million pesos in the first quarter of 2015-below Nuevo Leon and Federal-District, received a high quality appraisal credit by rating agencies Fitch Ratings, Moody’s, and HR Ratings.

The four rating agencies that record assessments to credit risk of the states a total of 32 rating actions.

Of that number, 23 were ratifications already assigned assessments five were increases in qualification and four changes of positive perspective.

During this period there were no changes from negative outlook downgrade or withdrawal of assessments by financial agencies.

For a government of a state may be favorable to have a good rating to support its ability to meet its debt obligations, and most importantly, to assess the risk of investing in such debt said director of Aregional, Flavia Rodriguez.

Of the 32 states, Tlaxcala is the only one that records to their credit risk assessment, the rest are evaluated by at least two financial agencies.

Nuevo Leon, which is the second most indebted at the national level, has the evaluation of four rating agencies, like Oaxaca.

The issue becomes relevant in light of the recent financial crisis world that was triggered by the housing bubble in the United States in 2008, and that the rating did not notice the risk of mortgage loans.

Victor Yellow, researcher at the Faculty of Economics of the UANL, said the Most rating agencies have criteria that are not very transparent, and the reason is that as a private company are not required to reveal how giving a rating.

Therefore, questions of 2007 and 2008 on the technical capacity to give a grade “were not taking seriously the role that should be played,” he said