Fitch maintains Mexico’s credit rating at “BBB-“, outlook “stable”

The agency Fitch Ratings ratified this Friday at “BBB-” Mexico’s credit rating, with a “stable” outlook, citing a prudent macroeconomic policy framework, as well as stable and robust external finances, and a debt/GDP range that is expected to remain stable.

However, the ratings agency added that the note is constrained by weak governance indicators, subdued long-term growth performance, continued political intervention affecting investment prospects and potential contingent liabilities from Pemex.

“The stable outlook is supported by stable public finances and the priority that decision makers place on them and macroeconomic stability, despite the challenges of moderate economic growth prospects,” Fitch said in a statement.

The rating agency mentioned that it expects the government of the president Andres Manuel Lopez Obrador Maintain your commitment to financially support Pemex, the world’s most indebted oil company, as part of your priority to strengthen the role of state-owned companies in the energy sector.

However, the Government anticipates not guaranteeing Pemex’s debt.

Among other things, Fitch said that the elevated inflation, at maximums of more than two decades, may increase its persistence outside the target range of 3%, affecting expectations. In addition, he anticipated that the Bank of Mexico will continue with the tightening of its monetary policy and projected that the key rate will reach 10.75% by the end of 2022.

erp