Economics

Mexico Downgraded to Baa1 by Moody’s on Weak Growth Outlook

  • Mexico’s sluggish economic growth contributed to cut
  • State oil company Pemex remains a concern for fiscal position

Photographer: Alejandro Cegarra/Bloomberg

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Mexico received a long-anticipated downgrade by Moody’s Investors Service after a year of economic contraction and persistent uncertainty.

The nation’s sovereign debt was downgraded one notch to Baa1 with a negative outlook, the rating firm said in a statement. Mexico has held a solid A3 investment-grade rating since 2017, but Moody’s lowered the country’s outlook from stable to negative in June 2019.