Fitch warns of López Obardor risk: On 19 March credit ratings agency Fitch identified Mexico’s presidential candidate Andrés Manuel López Obrador as a potential risk to the country’s economic stability. In a press release published on 16 March, Fitch – which confirmed Mexico’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at BBB+ with a stable outlook – reported that López Obrador’s election could lead to slower implementation of structural economic reforms, especially in the energy sector, which are needed to support domestic economic growth. The Fitch press release warns that López Obrador’s presidency could also lead to a reorientation of economic policies to favour greater state involvement as well as plans for an increase in government spending. As the 1 July general election approaches, Fitch predicts greater volatility in the financial markets.
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