Fitch Revises Up Mexico Outlook

Fitch Ratings has revised the rating outlook on Mexico’s long-term foreign and local currency sovereign Issuer Default Ratings (IDRs) to positive from stable and affirmed the country’s BBB/BBB+ long-term foreign/local currency and F3 short-term IDR ratings. The ratings revision reflects Mexico’s external solvency ratios and the credibility of the country’s fiscal policy following the successful passage of the pensions reform bill, said Fitch. Commenting on the improved outlook by Fitch, Goldman Sachs analysts Alberto Ramos noted that continuing progress on reform, particularly tax reform, would contribute greatly to an upgrade in the near future, as would measures to reduce the budget dependence on oil revenues. He also indicated a likely outlook upgrade by S&P may be on the cards.