The HR Ratings agency maintained Mexico’s rating at “BBB+” and changed the outlook from Negative to Stable, in recognition of the government’s prudent fiscal management and the financial strength provided by the balance of the Bank’s international reserves. from Mexico.
With this change, Mexico’s sovereign rating stays three notches above investment grade, the highest level of the Mexican rating among the most internationally recognized agencies. The Stable outlook indicates that there is no risk of a rating cut in six to 12 months.
In the statement, the agency’s analysts highlighted that the stable outlook also responds “to the certainty provided by the conclusion of the process of the Energy Reform proposal.”
Conclusion that could benefit the behavior of economic growth in the medium term by providing certainty for investors, they highlighted.
“HR Ratings considers that there will be no further deterioration in institutional strength in the short term.”
They highlighted that the debt is below the expectations they had in the firm in the previous review. They particularly referred to the sovereign debt, which at the end of 2021 stood at 46.44% of GDP, a proportion lower than the 48% of the product previously projected.
cropping motifs
HR Ratings mentions four factors that can motivate a rating cut: the short-term deterioration of the political environment that translates into or affects the certainty of public policies; greater and more prolonged inflationary pressures that delay the objective; a deterioration of the fiscal balances due to greater pressures on public finances due to the debt of Pemex, the Federal Electricity Commission and the Dos Bocas refinery, or due to effects on external accounts.