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Mexico Malaise Threatens to Tarnish Pena Nieto Rating Legacy

  • S&P cut outlook on country’s rating to negative this week
  • Mexico has received 3 upgrades since Pena Nieto took office
Updated on

Mexican President Enrique Pena Nieto’s track record of winning ratings upgrades is in serious jeopardy.

On Tuesday, S&P Global Ratings revised the country’s outlook to negative and said there’s at least a one-in-three chance of a downgrade in the next two years if Mexico’s debt increases more than forecast. It marked the second time in the past five months that a major ratings company lowered the nation’s outlook. The trend has been mirrored in the swaps market, where Mexico is seen as less creditworthy than peer Peru, as well as lower-rated Panama.