Fitch Ratings has restored Jalisco’s credit rating to BB+, having reduced it from A+ to D- late last month.
The government’s rating was downgraded after the State Congress voted to default on a 1.4-billion-peso loan contracted to help pay for the Guadalajara 2011 Pan American Games. But, as reported last week, Congress has since approved another loan of 2.4 billion pesos in order to pay off the outstanding debt instead of defaulting.
Fitch reported that state officials had provided official documentation guaranteeing full repayment of the initial loan on January 17.“Jalisco has a relatively high level of long-term debt,” Fitch noted, “but the debt is now manageable given the size of the state budget.”