Municipality of Lima (Peru): Update following rating downgrade to Baa2 from Baa1, outlook remains stable

Moody's downgrades Lima's rating to Baa3 and its BCA to ba1; outlook stable - Rating Action – 2023/05/26 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Lima, Municipality of: Update to credit analysis - Credit Opinion – 2023/02/13 – US$ 250.00 – ...The credit profile of the Municipality of Lima (Baa2 negative) reflects its positive operating margin, offset by cash financing deficits resulting from the city's ambitious infrastructure plan, which has been financed through debt and available liquidity. During 2021, Lima's operating margin improved (17.2% of operating revenue) as a result of an 8.2% increase in operating revenue and a 4.6% decrease in operating expenses. Additionally, the city pursued its planned infrastructure program, leading to a significant cash financing deficit of 17.6% of total revenue during 2021, financed through available liquidity. As a result, cash/current liabilities decreased to 0.7x from 1.4x, the main credit challenge of Lima. We expect Lima to continue posting cash financing deficits during 2022 and 2023 of around 20% of total revenue, on average, financed through additional debt. Net direct and indirect debt could increase to 73% of total revenue by year-end 2023....

Lima, Municipality of: Update following outlook change to negative - Credit Opinion – 2022/09/21 – US$ 250.00 – ...The credit profile of the Municipality of Lima (Baa2 negative) reflects its positive operating margin, offset by cash financing deficits resulting from the city's ambitious infrastructure plan, which has been financed through debt and available liquidity. During 2021, Lima's operating margin improved (17.2% of operating revenue) as a result of an 8.2% increase in operating revenue and a 4.6% decrease in operating expenses. Additionally, the city pursued its planned infrastructure program, leading to a significant cash financing deficit of 17.6% of total revenue during 2021, financed through available liquidity. As a result, cash/current liabilities decreased to 0.7x from 1.4x, the main credit challenge of Lima. We expect Lima to continue posting cash financing deficits during 2022 and 2023 of around 20% of total revenue, on average, financed through additional debt. Net direct and indirect debt could increase to 73% of total revenue by year-end 2023....

Moody's changes Lima's outlook to negative from stable; affirms Baa2 rating - Rating Action – 2022/09/01 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Lima, Municipality of: Update to credit analysis - Credit Opinion – 2022/03/16 – US$ 250.00 – ...The credit profile of the Municipality of Lima (Baa2 stable) reflects its positive operating margin, offset by cash financing deficits resulting from the city's ambitious infrastructure plan, which has been financed through debt and available liquidity. During 2020, Lima's operating margin deteriorated (0.4% of operating revenue) as a result of a 9.5% decrease in operating revenue and a 21% increase in operating expenses. Additionally, the city continued with its infrastructure program, leading to a significant cash financing deficit of 24.6% of total revenue during 2020, which was financed through available liquidity. Because we expect Lima to continue to face challenges related to the coronavirus pandemic, leading to a slow recovery, it will likely register a financial deficit of 8.6% in 2021 and 2022, on average. This could further hurt liquidity because the municipality does not have plans to acquire additional debt....

Municipality of Lima (Peru):Update following rating downgrade to Baa2 from Baa1, outlook remains stable - Credit Opinion – 2021/09/08 – US$ 250.00 – ...El perfil crediticio de la Municipalidad de Lima (Baa2 estable) refleja mßrgenes operativos positivos, compensados por dTficits financieros derivados del ambicioso plan de infraestructura de la ciudad, la cual se ha financiado con deuda y liquidez disponible. En 2020, Lima experiment= un deterioro de su margen operativo (0.4% de los ingresos operativos) como resultado de una disminuci=n del 9.5% de los ingresos operativos y un aumento del 21% de los gastos operativos. Asimismo, la ciudad continu= con su programa de infraestructura que provoc= un importante dTficit financiero en 2020 del 24.6% de los ingresos totales, financiado mediante la liquidez disponible. Dado que esperamos que Lima seguirß enfrentando desaffos relacionados con la pandemia del coronavirus que se traducen en una recuperaci=n lenta, es probable que se registre un dTficit financiero promedio del 8.6% en 2021 y 2022. Esto podrfa afectar a·n mßs la liquidez ya que la municipalidad no prevT adquirir mßs deuda....

Moody's downgrades Lima's rating to Baa2; stable outlook - Rating Action – 2021/09/03 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Moody's baja la calificación de Lima a Baa2; perspectiva estable - Rating Action – 2021/09/03 – US$ 180.00 – ...Global Credit Research - 03 Sep 2021 New York, September 03, 2021 -- Moody's Investors Service ("Moody's") baj= hoy la calificaci=n de emisor de la Municipalidad de Lima (Lima) a Baa2 desde Baa1 y su evaluaci=n del riesgo crediticio base (BCA, por sus siglas en inglTs) a baa3 desde baa2. La perspectiva permanece estable. La acci=n de calificaci=n resulta de la decisi=n de Moody's de bajar la calificaci=n del Gobierno del Per· a Baa1 desde A3 y cambiar su perspectiva a estable desde negativa. Para obtener informaci=n mßs detallada consulte el comunicado de prensa del soberano. (https://www.moodys.com/research/-- PR 452005) FUNDAMENTO DE LAS CALIFICACIONES La baja de la BCA a baa3 desde baa2 y de la calificaci=n de emisor a Baa2 desde Baa1 muestra un deterioro del riesgo sistTmico de Lima, reflejado en el cambio de calificaci=n del Per·, asf como las dificultades intrfnsecas en materia fiscal que enfrenta Lima. El municipio ha experimentado un deterioro de su balance operativo bruto (GOB,...

Municipality of Lima (Peru): Update following rating affirmation - Credit Opinion – 2020/11/06 – US$ 250.00 – ...The credit profile of the Municipality of Lima (Baa1 stable) reflects its positive operating margin, offset by the city's cash financing deficits resulting from its ambitious infrastructure plan, which has been financed through debt and available liquidity. As a result, its debt level was equivalent to 67.3% of its operating revenue as of year-end 2019, a high level compared with that of its regional peers. In 2019, Lima posted a cash financing requirement of 14.2% of total revenue as a result of infrastructure investments mainly related to mobility, which led to a deterioration in its liquidity. Given that we expect the coronavirus pandemic and the economic contraction to lead to lower revenue collection and higher spending, Lima will likely register a deficit of 15% in 2020. This could further hurt liquidity because the municipality does not have plans to acquire additional debt....

Municipality of Lima (Peru):Update following rating affirmation - Credit Opinion – 2020/11/06 – US$ 250.00 – ...El perfil crediticio de la Municipalidad de Lima (Baa1 estable) refleja su margen operativo positivo, compensado por dTficits financieros que resultan de su ambicioso plan de infraestructura, el cual ha sido financiado a travTs de deuda y liquidez disponible. Como consecuencia, su nivel de deuda fue equivalente al 67.3% de sus ingresos operativos a finales de 2019: un nivel alto en comparaci=n con el de sus pares regionales. En 2019, Lima registr= un dTficit financiero de 14.2% de los ingresos totales como resultado de inversiones en infraestructura relacionadas principalmente con la movilidad, lo que condujo a un deterioro de su liquidez. Dado que esperamos que la pandemia del coronavirus y la contracci=n econ=mica generen menor recaudaci=n de ingresos y mayor gasto, Lima probablemente registrarß un dTficit de 15% en 2020. Esto podrfa afectar a·n mßs la liquidez, ya que la municipalidad no tiene planes de contraer deuda adicional....