Fitch affirms Mexico at ‘BBB+’; revises outlook to Negative

Fitch Rating has recently announced that it affirmed  Mexico’s Long-Term, Foreign-Currency Issuer Default Rating (IDR) at ‘BBB+’ while revising the Rating Outlook to Negative from Stable.  

Key quotes from the press release

• The Outlook revision to Negative reflects the deteriorating balance of risks confronting Mexico’s credit profile associated with scope for policy uncertainty and deterioration under the incoming administration.
• There are risks that the follow-through on previously approved reforms, for example in the energy sector, could stall, and that other policy proposals result in lower investment and growth than currently expected.
• Agreement with the U.S. and Canada on a revised trilateral trade treaty to replace NAFTA — a process in which the transition team participated — reduces the risk of a disruption to trade with Mexico’s biggest export market.  
• The economy has proved resilient although has been under-performing relative to rating peers in recent years.