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The financial rating agency Fitch Ratings gave a positive score to Baja California thanks to its strong economic performance and the successful implementation of a strategic plan.
Baja California achieved a financial milestone by receiving a positive rating from the prestigious rating agency Fitch Ratings, announced Governor Marina del Pilar Ávila Olmeda. The news came as a result of a series of key factors that have boosted the state’s financial capacity and bode well for a promising economic future.
According to the Fitch Ratings report, several factors contributed to the improvement in Baja California’s credit rating. Among them, there is a significant improvement in revenue collection, containment of operating expenses, an increase in productive investment, and a reduction in short-term debt issuance. These elements combined to strengthen the state’s financial position.
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The rating agency also highlighted the substantial recovery of Baja California’s financial balance in 2022, as well as the positive momentum in local revenue collection. It is forecasted that this positive trend will continue throughout the remainder of 2023 and in the coming years.
The positive finance plan for Baja California yielded good results.
In her statement, Governor Marina del Pilar Ávila Olmeda emphasized the importance of the successful implementation of the financial plan by her administration. Furthermore, she highlighted that Fitch Ratings projects a gradual improvement in the state’s debt sustainability in their rating scenario. This suggests a more stable and sustainable financial outlook for Baja California.
Baja California’s Secretary of Finance, Marco Antonio Moreno Mexía, explained that the diversity and dynamism of the state’s economy, as a border region, play a crucial role in its ability to cover debts with annual cash flow. This situation should attract investors and open up new opportunities for economic development and additional infrastructure projects in the region.
Moreno Mexía also anticipates that Fitch Ratings’ positive rating will enable favorable revenue growth for the state in 2023, providing greater fiscal autonomy in its relationship with the federal government.
This step forward in fiscal autonomy should provide more room for maneuver in local policies and projects.
The financial stability of the state is growing
In addition to the notable improvement in the credit rating by Fitch Ratings, another indicator of Baja California’s strong financial health is the recent upgrade in its rating by HR Ratings, another influential rating agency. This additional endorsement adds another layer of confidence in the financial stability of the state.
HR Ratings’ decision to upgrade the rating of Baja California government’s finances is a clear reflection of the strength of the economic and fiscal policies implemented in the region.
It demonstrates that this is not an isolated phenomenon but a sustainable indication of the state’s economic health. This positive rating reaffirms the effectiveness of the measures taken by state authorities to ensure financial stability and sustainable growth.
This combined endorsement from Fitch Ratings and HR Ratings is a significant achievement that demonstrates Baja California’s commitment to sound and responsible financial management. The positive rating is not only a recognition of the efforts made but also has a direct impact on the economic future of the region.
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Sources: El Vigia, El Universal, El Sol de Tijuana