Post by firoj1414 on Feb 14, 2024 5:44:32 GMT -5
Mexico City Global Ratings reaffirmed the credit rating and maintained the stable outlook for Mexico, but warned that there could be a downgrade in the country's sovereign rating in the future if the fiscal deficit increases further. The agency confirmed Mexico's long-term sovereign ratings, in foreign currency at and in local currency at BBB+, with a stable outlook. according to a statement published this February 1, 2024. The stable outlook considers a base scenario in which, whatever the outcome of the June 2 elections, the next Government will maintain the cautious execution of Mexico's macroeconomic policies, including prudent monetary policy and a return to low fiscal deficits . S&P Global noted that the stable outlook reflects its expectation that cautious macroeconomic management will prevail over the next two years despite complex international conditions.
This horizon - he adds - includes the period prior to the national elections in June, the presidential transition period and the beginning of the next administration. S&P indicated persistently higher government deficits, resulting in a sharper-than-expected rise in public debt. In general, they would increase fiscal risks and aggravate the risk of extraordinary support to Petróleos Singapore Email List Mexicanos (Pemex) and the Federal Electricity Commission.larger deficit and increased debt) could also lead to a ratings downgrade." warns the rating agency. S&P confirmed the sovereign rating and the outlook because it considers that the next Government will present a budget for 2025 that reduces the public deficit by 5%, which is expected this year. The Federal Income Law approved by Congress, foresees a fiscal deficit and a record debt for the last year of the six-year term of President Andrés Manuel López Obrador.
The Public Sector Financial Requirements (RFSP), the broadest measure of the fiscal deficit, are projected at MXN$1.9 trillion in 2024, that is, 5.4% of the Gross Domestic Product (GDP). The fiscal deficit is explained by the debt, which is the largest on record. The debt requested by the AMLO Government, as the president is known, to finance part of the 2024 spending is MXN$1.7 trillion. Why did S&P reaffirm Mexico's credit rating? S&P reaffirmed Mexico's credit rating given economic growth of more than 3% in 2023 and the expectation that the Government will maintain cautious macroeconomic policies this year and in 2025. The agency's action would imply that, during AMLO's six-year term, M México's sovereign rating remained at BBB, while the outlook was negative for almost four years of the six-year term, from 2019 to July 2022, and then changed to outlook. stable and remain that way until the end of the administration in.
This horizon - he adds - includes the period prior to the national elections in June, the presidential transition period and the beginning of the next administration. S&P indicated persistently higher government deficits, resulting in a sharper-than-expected rise in public debt. In general, they would increase fiscal risks and aggravate the risk of extraordinary support to Petróleos Singapore Email List Mexicanos (Pemex) and the Federal Electricity Commission.larger deficit and increased debt) could also lead to a ratings downgrade." warns the rating agency. S&P confirmed the sovereign rating and the outlook because it considers that the next Government will present a budget for 2025 that reduces the public deficit by 5%, which is expected this year. The Federal Income Law approved by Congress, foresees a fiscal deficit and a record debt for the last year of the six-year term of President Andrés Manuel López Obrador.
The Public Sector Financial Requirements (RFSP), the broadest measure of the fiscal deficit, are projected at MXN$1.9 trillion in 2024, that is, 5.4% of the Gross Domestic Product (GDP). The fiscal deficit is explained by the debt, which is the largest on record. The debt requested by the AMLO Government, as the president is known, to finance part of the 2024 spending is MXN$1.7 trillion. Why did S&P reaffirm Mexico's credit rating? S&P reaffirmed Mexico's credit rating given economic growth of more than 3% in 2023 and the expectation that the Government will maintain cautious macroeconomic policies this year and in 2025. The agency's action would imply that, during AMLO's six-year term, M México's sovereign rating remained at BBB, while the outlook was negative for almost four years of the six-year term, from 2019 to July 2022, and then changed to outlook. stable and remain that way until the end of the administration in.