Fitch Publishes 'Impact of Federal Spending for Subnationals in Mexico'

NEW YORK & MONTERREY, Mexico--(BUSINESS WIRE)-- In the special report 'Federal Spending for Mexican Subnationals In the 2016 Expenditure Budget', Fitch Ratings provides a general analysis of federal spending for state and municipal governments included in the Expenditure Budget Project of the General Government (PPEF) for fiscal year 2016. It also addresses the potential impact on public finances of the subnational governments based on expectations of an unfavorable scenario.

Fitch believes that the project of federal spending is in line with historical records and consistent with the Federal Government tightening policy.

Even though the budgetary net effect of the federal spending proposed in the PPEF2016 is positive, Fitch sees a potential effect on the public finances of the states and municipalities of Mexico that traditionally receive federal funds from wages and economic provisions (Ramo 23) and decentralization and reallocation agreements, which are the components that presented the highest reduction.

Fitch does not discount a further adjustment after budget discussions in the congress, particularly in the Ramo 23. The main purpose of the ramo's funds is regional and municipal growth through infrastructure programs.

The agency will provide follow-up to the federal spending to be approved by congress no later than Nov. 15.

The special report 'Federal Spending for Mexican Subnationals In the 2016 Expenditure Budget' is available at www.fitchratings.com and www.fitchratings.mx or by clicking on the link above.

Additional information is available on www.fitchratings.com.

Related report:

- Reforms to the Subnational Sector Strengthening the Institutional Framework of the Local and Regional Governments (June 3, 2014).

Federal Spending for Mexican Subnationals In the 2016 Expenditure Budget (Project in Process for Approval)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=872278

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151014006240/en/

Fitch Ratings
Manuel Kinto, +52 (81) 8399 9100
Associate Director
Fitch Mexico S.A. de C.V.
Prol. Alfonso Reyes 2612,
Monterrey, N.L. Mexico
or
Tito Baeza
Associate Director
or
Humberto Panti
Senior Director
or
Gerardo Carrillo
Senior Director
or
Media Relations:
Alyssa Castelli, +1-212-908-0540
New York
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Appointment of Non-Executive Directors
• AG.AL Crowned Esports World Cup 2026 Club Champion After Landmark Competition in Paris
• Monster Energy's Max Alran Takes First Place in Downhill Mountain Bike Race at the 2026 WHOOP UCI Mountain Bike World Series Les Gets