The Fitch Ratings agency upgraded the credit rating of the municipality of Guadalajara from AA to AAA, according to its most recent financial evaluation. It should be noted that this adjustment is attributed to the strengthening of its own revenue collection and public spending management. Income and Finance Evaluation The report indicates that the municipality recorded a sustained improvement in its operating income, mainly due to an increase in property tax collection, supported by a favorable economic environment. “The rating action is based on a sustained improvement in operating income, mainly due to strengthened property tax collection and supported by a favorable socioeconomic context, which increased income flexibility,” Fitch states. Similarly, measures for spending control were identified, particularly in payroll and oversight. “The Administration applied measures to control payroll and strengthen spending oversight, in addition to acquiring equipment for waste collection and sanitation,” the report reads. Service Coverage and Debt The document indicates that the municipality covers its maintenance and public service expenses through its own revenues and transfers. Additionally, the AAA rating was reaffirmed for the existing credits with two banking institutions. It should be noted that the agency did not detect additional risk factors that could affect the rating. “Fitch did not identify additional factors that could affect the rating of Guadalajara”. With this result, Guadalajara is at the same level as other municipalities such as Zapopan and Chihuahua, both with an AAA rating.
