Fitch Ratings has maintained its A-(mex) rating for Mexico's Monterrey water utility SADM, despite recently downgrading Nuevo León state, the ratings agency said in a report.
The utility was not affected by Nuevo Leon's downgrade to A- as it has a "low dependence on the state's financial support."
Fitch has affirmed SADM's rating due to the company's "outstanding efficiency, coverage and services and high levels of infrastructure investment," the report said.
Supplying water to 1.1mn users, the utility's total income for 2010 was 3.46bn pesos (US$291mn).
In 2010, SADM invested 2.08bn pesos in infrastructure. Work included repairing damage caused by Hurricane Alex, the Monterrey V potable water project and work to improve coverage in northern Monterrey.
Despite maintaining its rating, the authority has a high level of debt which, although long-term, could "limit the organization's financial flexibility in the face of adverse events," Fitch said.