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Mexico & Nafta - December 2018

Economic Highlights

Negative outlook: On 31 October Fitch Ratings, the international credit ratings agency, downgraded its outlook on its Mexico ‘BBB+’ credit rating from ‘stable’ to ‘negative’. In a statement Fitch cited the uncertainty over future economic policy in Mexico under the incoming government of President-elect Andrés Manuel López Obrador sparked by López Obrador’s announcement that his administration will cancel the US$13.3bn project to build a new international airport for Mexico City (NAIM) after it was rejected in a public consultation. According to Fitch this decision sends “a negative message to investors”. It added that “there is the suggestion that other projects and recently approved economic reforms such as the energy sector reform could be put to a popular vote, which would introduce more uncertainty”. The Fitch statement concludes by saying that the downwards revision of Mexico’s credit rating outlook increases the chances that its ‘BBB+’ rating could be downgraded in coming months. 

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