He dollar retail opens the day selling at 23.88 pesos, 23 cents or 0.97% above the previous closing, as a result of the downgrade of Mexico’s credit rating and of Pemex by Standard & Poor’s (S&P).
The peso in international markets reports a depreciation of 53 cents or 2.3% against the green currency, trading at around 23.48 units. Yesterday, S&P Global cut Mexico’s credit rating one level, from ‘BBB +’ to ‘BBB’, keeping the outlook “negative”.
Likewise, the Pemex rating from ‘BBB +’ to ‘BBB’ with a “negative” perspective, similar to the sovereign. Analysts expect it to take action on the global scale ratings of CFE, various financial institutions and Mexican companies in the coming days.
It also reads: JP Morgan estimates 7% drop in the Mexican economy
The rating agency mentioned that they foresee a pronounced impact on the economy of Mexico by the Covid-19, included in the United States, the main trading partner, as well as lower global oil prices.
Despite the decrease, the market discounts that Mexico will continue to be a country with “investment grade”, in line with our expectation, warns Gabriel Casillas, deputy director general of economic analysis at Banorte.
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