Yucatán’s Credit Rating Soars to AA- – What’s Behind the Upgrade?

The state of Yucatán's credit rating has been upgraded from A+ to AA- by Moody's Local México. This upgrade is a reflection of the state's consistent improvement in liquidity, increased revenue, and effective financial planning. These factors have enabled a significant boost in capital expenditure.

This improved rating is a direct result of enhanced liquidity and the eradication of short-term debt. These achievements can be attributed to Governor Mauricio Vila Dosal's commitment to transparent and efficient management of public resources, which has greatly improved the quality of life for Yucatecan families.

The state has also implemented several tax measures, resulting in a revenue collection on par with other AA- rated states. This has reduced Yucatán's reliance on federal transfers, further strengthening its financial independence.

Since 2023, Yucatán's financial status has been on an upward trend. HR Ratings increased the state's rating from AA to AA- in 2023, and upgraded the outlook to positive in March 2024. HR Ratings also praised Yucatán's superior Environmental, Social, and Governance (ESG) factors and its adherence to the Law of Financial Discipline.

Fitch Ratings also upgraded Yucatán's rating from A+ to AA- in May. This upgrade reflects the state's strong local revenues and controlled expenditure growth. Fitch Ratings also acknowledged the state's successful debt settlement efforts and its actions to bolster local collection and exceed national GDP growth.

The $3,063 million pesos financing for the Altura Port expansion was taken into account by all three rating agencies. They also highlighted the current administration's public investment projects, including the Yucatán Seguro Technological Modernization, the Amicable and Sustainable Mobility System, and the Internet in Municipalities program.

Yucatán has been recognized for its financial management, achieving first place in the Finance-PbR-SED Results-Based Budget Evaluation and scoring 100 in IMCO's budgetary information barometer. These accolades underscore the state's financial transparency.

At the start of his term, Governor Vila Dosal implemented measures to protect state finances, including the Government of the State of Yucatán 2018-2024 Austerity Agreement. This agreement laid the groundwork for more efficient and responsible spending. As a result, administrative spending has been reduced by over 13 billion pesos in five years, freeing up funds for projects that directly benefit citizens.