translated from Spanish: Fitch and Moody’s lower rating and perspective for Mexico

The Fitch ratings and Moody’s agencies cut Mexico’s rating and credit perspective, respectively, due to trade tensions with the US, along with the uncertainty of national politics.
What are qualifiers and what does it mean for Mexico’s perspective to change from stable to negative?
Fitch lowered the note to ‘ BBB ‘ from ‘ BBB + ‘, due also to “the deterioration of Pemex’s credit profile, along with the current weakness in the macroeconomic perspective”, which, he said, are aggravated by the threats of Donald Trump’s government to increase Tariffs, as well as the constant fiscal restrictions of the Mexican government.
The qualifier also questioned that the support of Andrés Manuel López Obrador’s government to Pemex’s finances, considering that the actions announced for its rescue “are not enough to provide a long-term solution or avoid a continuous deterioration in the Credit Profile “.
He also highlighted as “unlikely” that suspending private-sector bidding rounds as part of energy reform will improve investment confidence.
“According to Fitch, meeting fiscal targets will become more difficult by 2020 and could result in a tighter policy that generates a new obstacle to growth,” he published in reference to López Obrador’s promise not to raise taxes Before 2021.
Meanwhile, the Moody’s agency changed its outlook for Mexico from “stable” to “negative,” but maintained the ‘ A3 ‘ rating.
READ: Qualifiers punish the country for neoliberal politics that was a failure: AMLO
The decrease in one step means that there is a greater likelihood that the government will fail to meet its payment commitments.

Dollar jumps to 19.73
Following the announcement of the qualifiers, the dollar gained ground by quoting at 19.73 pesos.
However, at the time of the announcement of the agencies, the peso came to quote up to 19.82 pesos, which involved an increase of almost 32 cents, after closing this afternoon in the country up to 19.50 pesos per green ticket wholesale.
READ: Standard & Poors Low prospect of Pemex to negative qualification for low company performance
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Original source in Spanish