18 Articles
18 Articles
Standard & Poor’s (S&P) ratified the rating of Mexico’s sovereign debt in BBB – even in terms of investment – but changed the outlook to negative, which could lead to a reduction in the next 24 months. Following this deterioration is the low economic growth, insufficient to help reduce the public deficit more rapidly, explained the firm’s risk.
S&P Global Ratings reviewed its perspective on Mexico’s long-term ratings from “stable” to “negative” due to the weakening of fiscal flexibility, although it confirmed its rating in foreign currency in “BBB” and in local currency in “BBB+”. “The negative perspective reflects the risk of very slow fiscal consolidation, mainly due to low economic growth, resulting in an increase in public debt greater than expected and a greater burden of interest…
The qualifier warned that it could lower Mexico’s rating if fiscal deficits persist or the trade relationship with the US worsens.
Mexico maintains its investment grade ratings from the three most recognized sovereign debt rating agencies: Standard & Poor’s, Moody’s, and Fitch. Yesterday, Standard & Poor’s issued a warning, reaffirming Mexico’s investment grade at BBB, two notches above the minimum required. Standard & Poor’s cautions that continued low economic growth will put pressure on revenues. Pressure could also arise from support for Pemex and the CFE (Federal Elect…
The agency noted that the T-MEC review, the lower dynamism of private investment and financial support for Pemex and CFE could increase pressure on public finances over the next few years.
Coverage Details
Bias Distribution
- 75% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
