The rating agency Fitch Ratings raised the credit rating of the municipality of Atizapán de Zaragoza, in Mexico, highlighting its positive outlook and the significant increase in local revenues expected between 2022 and 2023. This improvement confirms the progress in national long-term funding and credit quality ratings consolidated over the last three years. The favorable rating is justified by adequate budgetary results, stable liquidity levels, and the expectation of maintaining these standards in the future.
Regarding the inherited debt from previous administrations, the effective management of the mayor and the treasurer has been crucial in reducing the initial debt from 450 million pesos to 358 million pesos in June. Municipal treasurer, José Ortega Ríos, emphasized that Atizapán de Zaragoza has met all its financial obligations in a timely manner, avoiding refinancing and demonstrating discipline in budget management.
The international rating agency HR Ratings also raised the credit rating of the municipality in mid-September, thanks to the expectation of maintaining a low level of relative indebtedness, as well as the solid financial situation. Currently, the municipal rating is four notches above the risk rating, reflecting factors such as irrevocable guarantees, percentage of the General Participation Fund, adherence to special financial programs, and reserves for debt service.
The increase in the credit rating is attributed to solid financial management and efficient debt handling by the local government, led by Mayor Pedro Rodríguez Villegas. Budgetary discipline and the reduction of dependence on federal funds have been key points in the rating agency's recognition. Furthermore, investment in municipal development and infrastructure has exceeded 2 billion pesos in the last three years without resorting to debt acquisition.
In summary, Atizapán de Zaragoza is in a strong position to finance projects that benefit the community, backed by its good financial management and its focus on strengthening its own revenues.
