Appraisal firm Fitch Ratings approved Mexico’s sovereign credit rating this Monday. ‘PPP-‘, with standard perspective, The last place of investment quality for the company.
The Treasury pointed out that Mexico has less debt compared to similar economies, and that Fitch exemplifies in its conclusion a stable and strong external finance and a stable economic policy framework.
In addition, factors that support the appraisal firm’s potential growth are the low load on the oil sector, greater stability to trade, i.e. the signing of the D-MEC and the expectation of new investments in the country, supply chains due to global restructuring. Respect.
He noted, however, that the note was constrained by its relatively weak governance, quiet long-term growth performance and the impact of FEMEX’s strategy on easing the tax burden on the federal government’s own funds.
This year, the government expects to allocate 236 billion pesos, equivalent to 1 percent of national GDP, to Petrilios mexicanos (Bemex), with recurring assistance to the state’s manufacturing company in the coming years to be 0.5 percent. In GDP.
The Treasury said the rating agency had raised its growth outlook for 2021 from 4.2 percent to 5 percent, based on the reopening of the country’s economy and strong demand from the United States.
Undersecretary of Finance Gabriel Yorio wrote on his Twitter account that Mexico maintains its prudent monetary policy, stable performance of public funds, low levels of debt and a stable economic policy framework.
“In contrast to the economic downturn and other crises, the results were achieved without raising taxes or contracting expenditures, keeping tax revenue at 0.8% real by 2020. The approval protects favorable access to national and international markets,” he said.
This result is in line with the 2021 approvals of JCR, Moody’s, HR Ratings, DPRS and KPRA.
Match ‘PPP’ ratings
They point out that expectations about default risk are currently low. The ability to repay financial obligations is considered adequate, but adverse business or economic conditions are more likely to affect this ability.
