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Mexico Finance Head Assured on Debt Plan Even With Rate Rise

  • Meade expects S&P, Moody’s will maintain Mexico’s credit grade
  • Currency commission has found peso market sufficiently liquid
Updated on

Mexican Finance Minister Jose Antonio Meade said he’s confident that increases in the key interest rate and the decline in the nation’s currency will have no more than a marginal effect on the nation’s debt level and fiscal balance.

Meade, who replaced Luis Videgaray three weeks ago, predicted Mexico will maintain its credit rating, on negative outlook at S&P Global Ratings and Moody’s Investors Service, given its plan to have a primary surplus of 0.4 percent of gross domestic product in 2017. The nation’s currency commission, which Meade leads, has refrained from selling dollars to bolster the currency because the market has maintained sufficient liquidity even as the peso tumbled to a record low, he said in an interview.