Acapulco Has A Rating on Municipal Bonds

(Acapulco, AN 3 February) Certifying company Fitch Mexico has granted an A rating to Acapulco with a “stable outlook for the credit rating of the municipality.” The reason given was the effective collection of its income and the contracting of financing under terms and conditions favorable to the local government. These are factors to show strong credit. Responsible and transparent financial management by the city government is the main implication of the A rating. In its announcement, Fitch Mexico emphasized that Acapulco stands out as an economically important city, both at state and national levels. Areas of improvement, obviously, include the reining in of operational costs, a discipline of internal savings, improvements in the water system and roadways, and short term financings. The certifier made a veiled reference to CAPAMA as one area in which Acapulco must improve in order to maintain its “A” credit rating.