Skip to content
Subscriber Only

Mexico PRI Oil Amendment Helps Credit Outlook, Moody’s Says

Pledges made by Mexican ruling party leaders that the government will seek constitutional changes to break the state’s monopoly on oil are “credit positive” for the nation, Moody’s Investors Service said.

The recent announcements mark an “important” shift for the ruling Institutional Revolutionary Party, or PRI, which hadn’t publicly promised amendments before, Mauro Leos, a New York-based senior credit officer at Moody’s, said in a phone interview. The energy bill is “more critical” than an upcoming tax overhaul in deciding on Mexico’s Baa1 rating, said Leos, who added that a Moody’s committee will discuss the nation’s stable credit outlook before congress votes on the bill.