S&P Cuts Mexico, Pemex and CFE Outlook to Negative on Fiscal Strain
21 Articles
21 Articles
S&P Cuts Mexico, Pemex and CFE Outlook to Negative on Fiscal Strain
Key Facts —The sovereign cut: S&P Global Ratings on May 12 changed Mexico’s long-term foreign-currency sovereign outlook to negative from stable while affirming the BBB rating, citing risk that fiscal consolidation will be “very slow” amid weak growth, with a downgrade probability set at one in three over the next 12 to 24 months. —The […] The post S&P Cuts Mexico, Pemex and CFE Outlook to Negative on Fiscal Strain appeared first on The Rio Time…
After S&P Global Ratings dropped from stable to negative the perspective of Mexico’s qualification, it now did the same with Petróleos Mexicanos (Pemex) and the Federal Electricity Commission (CFE). S&P lowered from stable to negative the perspective of the notes of state energy companies, which are currently in BBB for the two cases. Yesterday, the agency revised down the credit perspective of the country’s sovereign rating, arguing persistentl…
The qualifier Standard and Poor’s (S&P) predicted that Mexico’s fiscal deficit this year would reach a level of 4.8 percent of gross domestic product (GDP), due to the negative performance of Mexican Petroleum (Pemex), the weakness of the economy and efforts to stabilize fuel prices through tax exemption.
The qualifier warned that it could lower Mexico’s rating if fiscal deficits persist or the business relationship with the EU S&P Global Ratings worsens from stable to negative the prospect of Mexico’s sovereign rating and confirmed the long-term notes in foreign currency in “BBB” and in local currency in “BBB+.” The agency explained that low economic growth, fiscal restrictions and increased contingent liabilities could hinder fiscal consolidati…
President Claudia Sheinbaum said that the Mexican economy “goes well” and dismissed S&P Global Ratings’ decision to change Mexico’s credit perspective, as well as Pemex and the CFE, from stable to negative. The governor said that the qualifier “was wrong” and said that her government will reverse that perception. “We’re going well, I’m working every day evidently, but confident that Mexico’s economy is fine. See the weight today, it’s at 17.16,”…
When an international qualifier changes a country’s perspective from stable to negative, it is not predicting a catastrophe, but it is turning on a warning light. What happens in the next two years will define whether that signal goes out or becomes worse. S&P Global Ratings ratified Mexico’s credit rating in BBB on May 12, 2026 with a negative perspective.
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