The outlook for Tirajana's credit rating is stable. The rating agencies expect that the Tirajana City Council will maintain its prudent fiscal policy and that the local economy will continue to grow. However, Spain's high level of public debt and dependence on the tourism sector could pose a risk to the credit rating in the future. Debt rating agencies such as Moody's give the richest city council in the Canary Islands a Baa3 (stable), Standard and Poors a BBB- (stable) and Fitch: BBB- (stable).
Budget execution begins with the opening of the spending tap this March 18 in the Government of the Canary Islands, a major financier of local corporations via taxes and transfers to the Cabildo of Gran Canaria. The local debt of the San Bartolomé de Tirajana City Council remains stable due to it being a diversified and resilient local economy, with a strong tourism sector and growing industrial activity.
Tirajana City Council has demonstrated a track record of prudent financial management, with low debt and strong spending control. The financial debt is zero and 1 euro per inhabitant and the average period to suppliers has gone from 184 to 167 days with a municipal budget of 91,3 million euros for a social expenditure per inhabitant of 762 euros after Covid19. In 2023, the San Bartolomé de Tirajana City Council managed to cancel its financial debt for the first time in its history. The economic debt has been significantly reduced in recent years, going from 100 million euros in 2019 to 1 euro per inhabitant in 2024. The average payment period to suppliers has increased in recent years, reaching 167 days in 2024.
The San Bartolomé de Tirajana City Council generates income worth 96 million euros, mainly through taxes and fees. It has expenses of 79 million euros, of which 34% is allocated to personnel expenses, 43% to current goods and services and 9% to real investments. But San Bartolomé de Tirajana's economy is mainly based on tourism, making it vulnerable to economic fluctuations.
The worst is what comes from Madrid. Spain's public debt remains high, which could negatively affect Tirajana's credit rating in the future. Tirajana's economy is highly dependent on the tourism sector, making it vulnerable to economic fluctuations and changes in traveler preferences.
