Mexico’s investment grade, without risk in S&P Global due to fiscal strengths

The Economist – Mexico City

Mexico has fiscal strengths that allow it to maintain its sovereign rating two notches above Investment Grade, at “BBB/stable outlook”, even in the midst of the complex global economic outlook and despite the risk of recession in the United States, warned the rating agency S&P Global (formerly Standard & Poor’s).

The sovereign analyst for Mexico, Lisa Shineller He trusted that no constitutional reform will pass that could further weaken the business climate, given the composition of the Mexican congress and in the proximity of the 2024 presidential elections, which is also a factor of strength for the sovereign rating.

He acknowledged that the macroeconomic assumptions on which the budget for next year is based are optimistic given the risk of a recession in the United States. Specifically, it refers to the projection of Mexico’s GDP at 3%.

But he clarified that the Mexican government has proven its commitment to maintaining prudent spending that leaves the debt below the average of countries with a similar rating, which is 60% of GDP.

In a conference call to report on the Economic Outlook forto Mexico and Central America, among the strengths that the country has to maintain the rating without change, he highlighted caution in the management of macroeconomic policies; credible monetary policy and the floating exchange rate regime.

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