Credit rating agency Moody’s has improved Mexico’s ratings outlook from negative to stable, affirming the country’s foreign currency and local currency issuer ratings, as well as foreign and local currency senior unsecured ratings, and local currency senior secured rating at A3.
Moody’s said the outlook changed due to a number of factors, including structural reforms and the expectation the next presidential administration may continue ongoing changes.
“Risks to growth stemming from the NAFTA renegotiation are receding as engagement between members of the treaty has remained solid despite a challenging negotiation process,” Moody’s noted, as one of the reasons for the outlook change.
The agency added that the nation’s structural reforms adopted since 2013 have “increased the Mexican economy's resilience to shocks, contributing to favorable fiscal results and a moderate decline in public sector indebtedness.”
“Moody's view that the probability is low that the next administration, through a sharp change in policy, weakens economic and fiscal trends,” Moody’s said.
The credit rating agency noted the country’s A3 ratings reflects “credit strengths that offset weak governance indicators compared to similarly rated peers.”