Fitch sees no need to downgrade – El Financiero
Rating Agency Fitch Ratings no hint That Mexico’s credit rating will be downgraded in the near future, as it maintains a good financial balance.
At the Fitch in Mexico conference, Carlos Morales, director of sovereign risk for Latin America at Fitch Ratings, noted that despite the fact that this year they expect Mexico to grow by close to 2% (less than the expected growth of many governments in this credit level), Not much chance to reduce the degree.
“Despite growth of about 2 percent from our base case, we are not seeing There is no urgency within the next 12 to 24 months of the classification change.”
He commented that Mexico had the advantage of having financial resources that had proven to be resilient.
“Mexico is emerging as a resilient country in the face of external shocks due to a high level of international reserves; He added that the flexible exchange rate mitigates external shocks, and at this point, there is a very strong external demand from the United States that has increased exports, but also increased remittances to the country, supporting domestic consumption.
However, he commented that issues such as governance remain a weakness of the sovereign government, as well as low levels of investment.
“This administration was more intrusive Compared to previous administrations, this has increased hype and discouraged the desire to invest in Mexico, which in turn has consequences for long-term growth.”
Morales estimated that it wouldn’t be But until 2023 When Mexico returns to economic levels before the health crisis due to the COVID-19 pandemic, while other countries at the same rating level have already surpassed their pre-pandemic levels.
In the middle of this month, the rating agency reaffirmed Mexico’s sovereign rating In BBB- with a stable outlook.
The agency stated that this certification is due to a A wise framework for macroeconomic policyStable external finances, as well as a stable level of public debt – at levels lower than the average for BBB- rated countries.
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