/arc-anglerfish-arc2-prod-infobae.s3.amazonaws.com/public/XTXKQAO4U5HLTDDR4U42IL2BCI.jpg "The peso is trading lower after Fitch downgraded to Mexico’s rating")
The Mexican peso depreciated on Thursday the day after the rating agency Fitch announced a cut to the credit note of the Latin American country, in the midst of the crisis due to the spread of the coronavirus.
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Also hit by global risk aversion, the currency was trading at 24.1490 per dollar, with a loss of 0.73% vs. Reuters benchmark price on Wednesday. Although previously, it fell 1.86%, to 24.4196 units.
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“In Mexico, the markets assimilate the downgrade of the sovereign debt rating, while today the focus will be on the announcement about the possibility of implementing Phase 3 (of the pandemic)”, Analysts at the financial group Banorte said in a report.
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Fitch Ratings announced yesterday a reduction to Mexico’s credit rating to “BBB-” from “BBB”, one notch above speculation, with stable outlook, arguing that the economic shock of the epidemic will lead the country to a “severe recession” in 2020.
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