Fitch Affirms Mexico at 'BBB-'; Outlook Stable

Fitch Ratings:

• Mexico's rating is supported by a prudent macroeconomic policy framework, stable and robust external finances, and government debt/GDP projected to remain stable at levels below the 'BBB' median.
• The rating is constrained by weak governance, muted long-term growth performance, continued policy intervention affecting investment prospects, and the potential contingent liabilities from Pemex.
• The Stable Outlook is supported by stable public finances and the priority policymakers attach to this and broader macroeconomic stability, notwithstanding challenges from muted economic growth prospects.
  • This supports our assessment of macro policy credibility as a rating strength and backstop to private-sector confidence despite continued microeconomic policy interventions and governance challenges.