S&P: Colima outlook negative

Standard & Poor's said it revised its outlook on the State of Colima, United Mexican States, to negative from stable and affirmed its mxA national scale rating.

The outlook reflects Colima's deteriorating budget due to declining own-source revenue and unsustainable spending growth rate, according to S&P.

The rating reflects an improving economy with one of the country's best basic indicators, manageable debt levels and a low debt service, and a proven management team that maintains solid policies and processes, the agency said.

Factors that offset these strengths are limited financial flexibility and Colima's pension obligations, S&P said.

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