Fitch Lowers Mexico's Rating Outlook To Negative

(RTTNews) - Fitch Ratings downgraded Mexico's rating outlook to 'negative' from 'stable', while the rating was affirmed at 'BBB+'.

The revision in outlook reflected increased downside risks to the country's growth outlook and the challenges this could pose for stabilization of the public debt burden.

The victory of Donald Trump in the U.S. presidential election has increased economic uncertainty and asset price volatility in Mexico, Fitch observed. Trump has alluded to renegotiating or terminating the North American Free Trade Agreement (NAFTA) with Mexico and tightening immigration controls.

The agency cited that Mexico's moderate growth profile was a rating weakness. Moreover, public finances have been facing pressure from the decline in oil income.

Nonetheless, Fitch said Mexico's 'BBB+' ratings are supported by the country's diversified economic base and a track record of disciplined economic policies that has anchored macroeconomic stability and curbed imbalances.