S&P ratifies Mexico’s sovereign rating at ‘BBB’ with a stable outlook

Risk rating agency Global ratings Standard & Poor’s (S&P) ratified this Thursday the sovereign rating Mexico at the “BBB” level, with a stable forecast, excluding the consequences of the June 2 elections in the country, in the context of unfavorable trends at the global level.

“This horizon includes the period up to elections June national elections, presidential transition and the start of the next administration,” the agency emphasized in its latest report.

The organization expects “prudent macroeconomic management, including prudent monetary policy and a return to low budget deficits” to continue over the next two years, which will see Mexico’s biggest elections, a presidential transition and the start of the next government administration.

He ruled out possible policy initiatives that could affect the business environment or the country’s long-term economic growth trend.

A set of elements that S&P considers key to promoting “investor confidence and access to international capital markets, even during periods of adverse global trends.”

This is a prelude to the presentation of the latest package of reforms President Andrés Manuel López Obrador, where he outlined changes to pensions, the minimum wage, energy, security, the judiciary and devolved bodies, among others.

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On the contrary, he predicted that the next Mexican government administration should take advantage of the investment opportunities created by the relocation of foreign companies. This phenomenon is known as “approximation”.

For his part, he anticipated that the high level of deficits maintained by the Mexican government was a downside risk that could lead to more pronounced debt margins, despite three years in a row of debt levels declining relative to its level. gross domestic product (GDP).

Until now, agencies such as Moody And Fitch ratings They also maintained a stable outlook on Mexico’s sovereign rating at ‘Baa2’ and ‘BBB-0’, respectively.


Source: Aristegui Noticias