...Ratings Affirmed: Mexico's rating is supported by a prudent policy framework, robust external finances, and its large and diversified economy, but constrained by muted long-term growth, weak governance, fiscal rigidities and contingent liabilities from state oil company Pemex. The Stable Outlook reflects Fitch Ratings' view that Mexico's rating has headroom to withstand the tougher economic environment amid U.S. trade protectionism, and that the administration of President Claudia Sheinbaum can keep fiscal consolidation goals broadly on track. Tariff Risks: Mexico is vulnerable to U.S. trade protectionism, as decades of integration have made exports to its northern neighbor a mainstay of the economy (27% of GDP in 2024). Tariffs could have a significant impact, especially in the auto sector, and the uncertainty is weighing on activity. These developments remain fluid and the fate of the trade relationship is likely to remain unclear at least until a review of the USMCA agreement, scheduled...
