Economics
Mexico Risks Credit-Rating Cut as S&P Cites Sluggish Growth
- Mexico’s rating by S&P already lower than Moody’s grade
- Mexican debt burden is moderate, has less fiscal room: S&P
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Mexico is at risk of a credit-rating cut after S&P Global Ratings revised its outlook to negative, citing “disappointing” economic growth and a rising debt load.
Stocks and the peso extended losses and the cost to hedge against losses in the country’s bonds rose after S&P said there’s at least a one-in-three chance of a downgrade over the next two years if the government’s debt increases more than forecast. S&P’s BBB+ rating for Mexico, three steps above junk, is already one level lower than Moody’s Investors Service. Fitch Ratings gives Mexico the same grade as S&P with a stable outlook.