Moody’s downgrades Mexico; raises its outlook from negative to stable

The rating agency Moody’s lowered the rating of Mexico’s sovereign debt, although at the same time it raised its outlook for the country from negative to stable.
On Friday, the agency and the Ministry of Finance and Public Credit (SHCP) reported that Mexico’s debt decreased to Baa2 in foreign currency and Baa1 in local currency.
According to the Treasury, with the outlook changing from negative to stable, Moody’s “expects the country’s rating to remain at the same level for the remainder of the current administration.”

“The rating agency highlights that the government of Mexico applied relatively prudent fiscal policies during the pandemic, which prevented a deterioration in fiscal metrics and the debt-to-GDP ratio,” the secretariat said.
“The rating agency recognizes the commitment of this government to preserve macroeconomic stability. It also points out that there is the potential to benefit from the relocation of companies due to integration with the United States, although it highlights that there are investment challenges that must be addressed to materialize this geopolitical and commercial opportunity that arises, “he added.
Just on Wednesday, Standard and Poor’s ratified Mexico’s rating and raised its outlook, also from negative to stable.

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Original source in Spanish