Fitch Affirms Mexico Sovereign Ratings

Fitch has affirmed Mexico’s rating (IDR) at BBB+ with a stable outlook. The agency cited Mexico’s strong macroeconomic policy framework, well-entrenched macroeconomic stability, and healthy external finances as primary supports of the country’s investment grade ratings. Passage of structural reforms and further improvement in business climate indicators would be viewed positively, adds the agency. “Further improvement in fiscal and external solvency ratios as well as a reduction in the vulnerability of public finances to oil income could also boost sovereign creditworthiness,” says Fitch. A significant and persistent decline in oil production that compromises public finances, especially in a less favorable oil price environment, and results in higher public debt burden would be negative for the rating, says the agency.