Málaga, (EFE).- The risk measurement agency Standard & Poor’s (S&P) has raised the rating of the long-term debt of the Junta de Andalucía from BBB+ (approved high) to A- (remarkable low). With a stable outlook, which is the best international financial solvency score since 2012.
With this ‘rating’ rise, Andalucía is placed among the communities with the greatest capacity to meet their financial obligations. Ahead of Aragon, Extremadura, the Balearic Islands or Valencia, and only one step from the risk rating of the Spanish Treasury (A).
“S&P’s decision is an endorsement of the Andalusian government’s economic policy and its commitment to creating a stable environment that generates certainty and confidence for investment.” This is highlighted by the Board in a statement.
S&P has valued “the prudent management of the debt and its commitment to budgetary stability and the policy of fiscal consolidation”. The regional executive ensures that this improvement is directly related to the path of compliance with the deficit target. Also of the average period of payment to suppliers of the last four years, which is 16 days, below the national average.
Prudent debt and liquidity policy
In its report, S&P considers that the liquidity of the Junta de Andalucía’s treasury has reached a comfortable position. Backed both by the softening of the maturity profile from 2024, and by the wide cushion of credit lines available to it. As well as the robust access demonstrated to external financing.
The agency also highlights that Andalusia develops a prudent debt and liquidity policy. And that their exposure to interest rate rises is relatively low. Given that 93% of its debt portfolio is subscribed to a fixed rate.
S&P recalls that Andalusia knew how to take advantage of the interest rate drops of the previous stage, then refinancing a large part of its debt portfolio, which now allows it to largely cushion the current rise in rates.
According to the Andalusian government, S&P’s decision “raises Andalusia’s financial reputation” and supports its commitment to create “a stable budgetary, financial and institutional environment that generates the necessary certainty and confidence for investment.” EFE