Fitch Ratings maintains Mexico’s rating at ‘BBB-‘ with a stable outlook


Fitch Ratings has confirmed Mexico’s credit rating at ‘BBB-‘ with a stable outlook, noting that the country maintains a “prudent” macroeconomic policy, “solid” finances and a stable level of debt.

Despite this, the rating upgrade would be constrained by weak governance indicators, subdued long-term growth and Pemex’s financial condition.

However, the rating agency expects the government to remain committed to financial support for Pemex as part of its priority to strengthen the role of state companies in the energy sector, and to continue providing support to the company.

In turn, the effect of nearshoring plays in Mexico’s favor, which represents “an important opportunity” for growth given the growing tensions between the United States and China and the desire of manufacturers to have shorter and more resistant supply chains. .

Should unorthodox interventions in microeconomic policy become more widespread or the country’s business climate is undermined and economic growth consequently weaker, Fitch Ratings could revise the rating downward.

Conversely, if the country addresses weaknesses in public finances through revenue reforms or an upward shift in growth prospects, Mexico could see its credit score improved.