Fitch: Institutional Framework for Mexican Subnational Governments

MEXICO CITY--(BUSINESS WIRE)-- Fitch Ratings published today the English version of the report 'Institutional Framework for Mexican Subnational Governments'. During the last decade, the institutional framework for subnational governments in Mexico has made significant changes that are considered part of a decentralization process and financial discipline. Although these adjustments have encouraged a greater degree of financial responsibility on subnational governments, Fitch considers that the institutional framework still has significant areas of opportunity in terms of financial autonomy, standardization, quality, and timeliness in the generation of information, as well as in the adoption of prudential regulations. Mexican authorities recently announced the development of new banking regulations for subnational loans on loan loss provisions, which will be monitored and analyzed in due course. According to the assessment of strengths and weaknesses performed by Fitch, the institutional framework of subnational entities in Mexico is classified under the 'Neutral' category, standing at an intermediate position with respect to the classification of institutional frameworks at a global level.

The report is available at 'www.fitchratings.com' and 'www.fitchmexico.com' in its original Spanish version.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: Institutional Framework for Subnational Governments in Mexico

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Fitch RatingsBrian Bertsch, +1-212-908-0549Media Relations, New York[email protected]orOmar de la Torre, +52 55 5202 7302DirectorFitch Mexico, S.A. de C.V.Blvd. Manuel Avila Camacho 88, Piso 3Distrito Federal CP 11950, MexicoorAlfredo Gomez, +52 81 8399 9100Senior DirectororGerardo Carrillo, +52 55 5202 7302DirectororHumberto Panti, +52 81 8399 9100Senior Director

Source: Fitch Ratings