HR Ratings raised the rating to the state of Nuevo León, to “HR A +” from “HR A”, with a stable outlook, because the state has solid social indicators that are higher than the national average, as well as in governance.
While the adjusted net debt (DNA) due to the restructuring of the Zero Coupon Bond represents 104.5% of the Free Disposal Income (ILD), supported by the fiscal strength of the federal entity.
“The upward revision is due to the result in the evaluation of environmental, social and governance factors, with a positive effect by having solid social indicators that are higher than the national average, as well as in governance, while average environmental conditions are identified. ”, Highlighted HR Ratings.
He added that, in line with the acquisition of financing and restructuring of the Banobras Zero Coupon Bond, “it is estimated that the adjusted net debt represents 104.5% of the Free Disposal Income in 2021, a level similar to the previously projected 101.0 percent” .
“This is supported by the fiscal strength of the entity, as it stands out for an adequate dynamism in its ILD, as a result of the economic activity in the state, which is expected to maintain a decreasing level of indebtedness during the projected period”, indicated HR Ratings.
Regarding expectations, the agency estimates for 2021 “a surplus in the primary balance equivalent to 1.0 percent. The ILD is expected to register an amount 8.9% higher than that observed in 2020, where the expected performance in federal participations stands out, as well as the recovery and strengthening in the collection of Taxes and Duties ”.
Reference-www.eleconomista.com.mx