Introduction to Hidalgo and its Relevance
Hidalgo, a state in central Mexico, has recently received its highest credit rating to date from Moody’s, an international agency. This recognition places Hidalgo among the top three best-rated entities in Mexico, highlighting its responsible financial management and economic stability.
Moody’s Evaluation Details
Following a second credit evaluation in the third quarter of 2025, Moody’s issued a press release on December 18th, detailing Hidalgo’s upgraded credit rating to AA.mx with a positive outlook. The agency acknowledged the state’s progress in managing public finances responsibly and positioned Hidalgo as one of Mexico’s best-rated entities.
Key Factors Behind the Rating Upgrade
- Strong Liquidity Position: Moody’s highlighted Hidalgo’s robust liquidity, characterized by low debt levels and a cash-to-current liabilities ratio of 5.2x as of the end of 2024, significantly exceeding its peers.
- Continued Improvement in Own Revenues: The agency noted that Hidalgo’s own revenues have grown by 15.9% compared to the same period in the previous year, enabling balanced financial results for 2025.
- Controlled Debt Levels: Moody’s projected that Hidalgo’s debt-to-operating income ratio would remain low, at around 15.1%, for the 2025-2026 fiscal period.
Impact on Hidalgo’s Economy and Residents
These positive assessments from Moody’s reflect Hidalgo’s fiscal discipline, administrative efficiency, and transparent spending practices. These factors have bolstered investor confidence and the trust of financial institutions, ultimately contributing to a more stable economic environment for Hidalgo’s residents.
Governor Julio Menchaca Salazar’s Commitment
Under Governor Julio Menchaca Salazar’s leadership, Hidalgo has demonstrated a steadfast commitment to responsible public finance management. This dedication has consolidated economic stability and ensured the well-being of Hidalgo’s families.
Regional Economic Benefits
Hidalgo’s economy has also benefited from private investments, which have positively impacted state revenues and federal transfer growth. This improvement in revenue sources has further reduced the state’s dependency on federal transfers, strengthening its fiscal space.
Key Questions and Answers
- What is the significance of Moody’s rating upgrade for Hidalgo? The upgraded credit rating from Moody’s signifies Hidalgo’s strong financial position, responsible public finance management, and economic stability. This recognition positions Hidalgo among the top-rated entities in Mexico.
- How does this rating impact Hidalgo’s residents? The positive assessment from Moody’s reflects Hidalgo’s fiscal discipline, administrative efficiency, and transparent spending. These factors contribute to a more stable economic environment for residents, fostering investor confidence and trust from financial institutions.
- What role does private investment play in Hidalgo’s economic growth? Private investments have played a crucial role in Hidalgo’s economic growth by enhancing state revenues and bolstering federal transfer growth. This improvement in revenue sources has reduced the state’s dependency on federal transfers, further strengthening its fiscal space.
