Mexico City. HR Ratings maintained Mexico’s long-term foreign currency debt rating at BBB+, three steps above investment grade; while maintaining a stable outlook, which means that it does not expect movements in the next 12 to 18 months.
The agency highlighted that the public sector’s net debt as a percentage of GDP was below its previous estimates at the end of 2023. This reflects the exchange rate appreciation and the greater growth in economic activity, despite the increase in the fiscal deficit observed during the year.
Although the rating agency expects an increase in net debt during 2024, in line with the fiscal balances budgeted by the Ministry of Finance and Public Credit for that year, it estimates that starting in 2025 a reduction will be observed as a result of a fiscal consolidation that will allow maintaining a stable trajectory of public debt.
Likewise, HR Ratings noted that economic activity grew well above its expectations in 2023, attributed to the boost in domestic demand, especially public and private investment.
For 2024, the agency revised upward its estimate of economic growth, from 2.1 to 2.5 percent in its real annual variation, due to the resilience that economic activity showed during 2023.
In addition, he highlighted that inflationary pressures continue to decline, although the general inflation rate is still above the central objective of the Bank of Mexico.
Finally, he noted that he will continue to monitor in the short term compliance with the fiscal balances budgeted by the SHCP, public policy decisions regarding parastatal companies, inflationary convergence and the behavior of the exchange rate in the current macroeconomic environment.
The Ministry of Finance indicated in a statement that this ratification of the sovereign debt rating reflects the commitment of the Mexican government to the good management of public finances, to continue with favorable access to national and international financial markets.
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– 2024-05-06 00:09:58
