LatinNews Daily - 07 July 2022

In brief: S&P revises Mexico’s outlook to stable

* International credit ratings agency Standard and Poor’s (S&P) has maintained Mexico’s long-term foreign-currency credit rating at “BBB” and local currency at “BBB+” but changed its negative rating outlook to “stable”. The ratings agency attributed the change in outlook to expected “continued cautious execution of fiscal and monetary policies” for the remainder of President Andrés Manuel López Obrador’s presidency, which ends in 2024. The agency forecast GDP growth of 1.7% for this year. Despite improving its outlook, S&P warned of “pressures on inflation and growth, amid international price shocks and the growing risk of recession in the US”. It also highlighted the “complex fiscal challenges” of state-owned oil company Pemex and electricity firm CFE, although added that there had been “reduced uncertainty over energy policy and progress in trade-related private sector investment”. On Twitter, López Obrador wrote that the ratings agency had recognised “the stability and fiscal and monetary prudence that this administration has promoted”. He added that other ratings agencies had similarly granted Mexico a stable outlook.

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