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Municipality of Lima assures that two international companies have given it an AA credit rating

Municipality of Lima assures that two international companies have given it an AA credit rating

The Municipality of Lima ensures that in the first 100 days of the current mayor Rafeael López Aliaga’s administration, he has obtained a credit rating of AA with a stable outlook, “much higher than the minimum level required (BBB-) to guarantee its investment grade.” The score would have been awarded by Apoyo & Asociados/Fitch Ratings and Pacific Credit Rating (PCR).

“The evaluation carried out by these rating companies has been based mainly on the efficiency of current spending, the increase in its operating results and the reduction of its public debt, among others, which demonstrates the good performance of the municipal finances of the current administration. municipality,” they specified.

As recalled, on Friday, May 26, the Moody’s agency reported that it upgraded the rating on the Municipality of Lima from the stable tranche to negative, placing it from Baa2 to Baa3, while it raised its credit profile from Baa3 to Ba1.

They explained that the historical volatility of cash financing surpluses is coupled with uncertainty about the ability of the mayor López Aliaga’s management to improve their resource holdings in the next 2 or 3 years, which increases liquidity risks, among other reasons.

In this regard, the mayor assured this newspaper that Moody’s rating is considering the actions of his predecessors, Jorge Muñoz and Miguel Romero, who left the municipality without money and with a payroll that exceeded its spending capacity. “Evaluate my management, not what a couple of idiots did,” she said.

He added that they have allocated money for common pots and water supply, among other actions that could not be financed if they were “bad of cash.”

Source: Larepublica

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