Monterrey, NL. The securities rating agency PCR True raised Nuevo León’s credit rating, ‘A+/M’ a ‘AA-M’ and confirmed the outlook as ‘stable’.
“The increase in the rating is due to the strengthening of the entity’s collection system during the last twelve months, derived from a series of good strategies implemented by the administration, at the same time supported by a faster economic recovery compared to what was initially planned” stated PCR Verum.
Likewise, the rating contemplates a favorable expectation regarding their perception of resources of federal origin, caused by the good incidence in the generation of their own income and population growth, which could contribute towards increasing their levels of productive public investment. which has remained low compared to other pairs.
Additionally, a good control is observed in its Current Expenses, despite a slight increase during the past year caused by the setbacks caused by the health contingency and the strengthening in the area of public security.
He attributed the positive progress in state finances “to the actions implemented by the administration, the strengthening of its collection system and the strength of the economic activity maintained by the entity.”
Although the Covid-19 pandemic had a negative impact in 2020, in the course of 2021 the state resumed the good dynamics observed during the study period.
Specifically, the good performance of the Payroll Tax (ISN) stands out, considering the fiscal incentives granted by the state government, including support to companies and the most affected sectors.
In the same way, the regularization of taxpayers, as well as new adjustments to the legal framework and the adequate work in the crossing of information have contributed to strengthening the generation of Own Income ”.
He indicated that Nuevo León has adapted to the new economic conditions imposed by the effects of the pandemic, “maintaining the dynamism in its foreign direct investment, the gross formation of fixed capital, as well as the certainty generated by its good government practices and the favorable conditions for the economic development of companies ”.
Additionally, it presents a significant increase in the 2022 Income Law compared to 2021 (+ 39.1%), due to better collection efficiency, as well as new contribution mechanisms seeking to protect the environment and social aspects ”.
Regarding the projections for 2022, he considered that the state expenditure budget of 117,743 million pesos is higher by “9.8% more than in 2021, an increase that would be directed to various urban infrastructure works and for the construction of roads, in order to improve mobility.
PCR Verum expects Operating Expenses to undergo slight upward variations, although without deteriorating its indicators or putting pressure on the financial flexibility of the state. Likewise, the state government has stabilized its financial position by making important adjustments in its spending structure, achieving more efficient use of resources.
The rating agency highlighted that the state government “is working on ecological mechanisms that allow generating externalities in the extraction of metals, gas emissions into the atmosphere, emission of pollutants to the ground and water; as well as the deposit and / or storage of waste ”.
“Also, a reengineering of mobility is emerging that will allow for better air quality forward, as well as a decrease in vehicular traffic,” emphasized PCR Verum.