Sinaloa, the best-rated state by Fitch, Moody’s, and Standard and Poor’s

Contrary to what happens in the national environment, Sinaloa has positioned itself as number one in the ratings of international firms that rate the credit risk of countries and companies, such as Fitch, Moody’s, and Standard and Poor’s, which have reduced the outlook for the Federal Government and Pemex’s debt, while the rating of “Stable” that was recovered in Sinaloa during 2018, remains in this year.

This was announced by the State Secretary of Administration and Finance, Carlos Ortega Carricarte, during a press conference where he spoke about the financial perspectives for this year, particularly with regard to public investment from the Government of the Republic, which He collapsed.

“The federal public investment in the state established in the Budget of Expenditures of the Federation decreased from about 2 billion pesos that brought in 2018 to 10 million pesos in the fiscal year 2019, that implies that a good part of the investment that we do in the state with federal recourse we are not receiving, “he reported.

He referred to the cancellation of Branch 23, through which the state received additional resources throughout the year, and cited that in 2018 Sinaloa obtained by this and other concepts as own revenues, the amount of 8 billion additional pesos, but so far from January to June of this year by the federal government, only 287 million pesos have been received.

Ortega Carricarte mentioned that last year, about 600 projects were registered and approved in the Ministry of Finance and Public Credit, and to date only three have been authorized, which are the hydraulic infrastructure works of the Uriah drain in Mazatlan, and drains. Bacurimí and Adolfo López Mateos, both in Culiacán, totaling 289 million pesos from the Metropolitan Fund.

To deal with this situation, the Secretary of Administration reported that so far this year, have increased own revenues 4.5 percent, which contrasts with the fall in the Federal Fund of Units.

Some of these measures are greater control of companies and individuals, in coordination with the Tax Administration System, which has allowed since 2017, the state of Sinaloa has been the number one entity nationwide in obtaining greater revenue from this source of resources, which has represented more than one billion additional pesos to meet the financial needs of the state.

“This situation has allowed the financial markets and the credit rating agencies to view the state favorably despite the national environment. And here I would like to highlight that last week a public tender for a short-term loan of 500 million pesos was awarded, “he added.

Six national banks went to this tender and the winners were Scotiabank with 400 million pesos, and Banamex with the remaining 100 million pesos, but both granting a preferential rate of TIIIE + .29 points, which is the lowest in the country. it is granted to governments, the same as it applies to Mexico City.

Ortega Carricarte mentioned that this rate represents a 87 percent decrease with respect to the rate applied for the previous state administration in 2016, for short-term loans, while for long-term loans, the TIIE rate + .33 that was obtained last year to restructure the long-term debt, is equivalent to a 50 percent decrease.

In this regard, he said Moody’s lowered the rating of the Government of the Republic and Pemex, from “Stable” to “Negative”, while in the case of Sinaloa kept it in 2019 as “Stable”, a rating that was changed from the beginning of the government of Quirino Ordaz Coppel, which went from “Negative” to “Positive” in 2017 and “Stable” in 2018 by the three international firms mentioned.

“Among the factors that stand out the rating agencies to award their rating include the growth of own income, financial discipline, low level of debt and a solid public investment,” he concluded.

Source: pmx portal

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