S&P affirms BBB rating on City of Queretaro, outlook stable

S&P affirms BBB rating on City of Queretaro, outlook stable

S&P Affirms BBB Rating on City of Queretaro, Outlook Stable

Standard & Poor’s Global Ratings has affirmed its ‘BBB’ long-term global scale credit rating on the City of Queretaro, Mexico, with a stable outlook. This decision underscores the city’s continued fiscal discipline and capacity to manage debt amid evolving economic conditions.

The ‘BBB’ rating indicates that Queretaro maintains adequate financial flexibility to meet its obligations, though it is more vulnerable to moderate adverse events compared to higher-rated jurisdictions. S&P’s assessment likely considers the city’s revenue diversification, debt sustainability, and governance framework. The stable outlook suggests that key credit metrics are expected to remain unchanged over the next 12–18 months.

Notably, Queretaro also holds a local scale rating of ‘mxAA+’ from S&P, reflecting its strong credit profile relative to Mexican subnational governments. This distinction highlights the city’s robust fiscal management within the national context. Previously, S&P upgraded Queretaro’s local scale rating to ‘mxAAA’ from ‘mxAA+’ in 2023, signaling enhanced confidence in its financial resilience.

For investors, the affirmation of the ‘BBB’ rating reinforces Queretaro’s attractiveness as a creditworthy issuer in Mexico’s municipal debt market. However, the rating remains one notch above speculative grade on the global scale, necessitating ongoing monitoring of fiscal policies and external economic risks.

S&P’s ratings are critical for Queretaro’s access to international capital markets, influencing borrowing costs and investor perceptions. The city’s ability to maintain its current fiscal trajectory will be pivotal in preserving the stable outlook.

(https://www.spglobal.com/ratings/es/regulatory/article/-/view/type/HTML/id/2796450): S&P Global Ratings (2023)
(https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/2370064): S&P Global Ratings (2024–2026)

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