Moody's cuts Cuautitlan

Moody´s Investors Service said it lowered the issuer rating of the municipality of Cuautitlan Izcalli to Baa1.mx from A3.mx, while maintaining the global scale rating at Ba3.

The outlook is stable.

According to Moody's, the rating change reflects a trend of growing debt that will require a larger share of resources to cover debt-service costs, affecting the municipality's limited financial flexibility. It also incorporates the trend of mixed financial results over the past five years in which financing deficits have been dominant, contributing to slipping operating margins, the agency said.

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