Nayarit increases its credit rating

The fiscal results obtained by Nayarit during the past year caused HR Ratings to raise the rating of the state from “HR BB” to “HR BB+” and change the outlook from Stable to Positive.

It is also expected that in the coming years there will be a reduction in the use of short-term debt.

“At the end of 2021, the state registered a surplus in the primary balance (BP) equivalent to 2.4% of total income (IT) where the registered increase of 4.5% in Free Disposal Income (ILD) stands out, as well as an increase in management income of 8.0%”, indicates the agency.

In addition, it highlights that in May 2022, the state decided to settle in advance the long-term credit it had with Santander for 238.4 million pesos.

The foregoing caused the adjusted net debt (DNA) metric to decrease from 81.3 to 76.6%, while debt service fell from 21.3 to 15.0%, as a consequence of the lower use of short-term debt at the end of 2021, as well as to the increase in ILDs.

HR Ratings estimates for this year a surplus in the BP corresponding to 1.1% of IT, due to the fact that a recovery in own income is projected derived from the control strategies, as well as an increase in the tax rates on Lodging, the sale of alcohol and Payroll Tax.

The agency highlights that Nayarit has an average vulnerability to landslides and floods for human settlements, although in recent years, the occurrence of tropical cyclones has generated emergency declarations and extraordinary expenses.

It considers the governance factor to be limited, which affects the rating, since historically there has been a lack of liquidity that resulted in the failure to pay short-term obligations.

estados@eleconomista.mx