Outlook On Mexico Revised To Stable From Negative On Improved Debt Prospects; 'BBB+/A-2' Ratings Affirmed

OVERVIEW We expect that Mexico's general government debt burden will hover around 45% of GDP this year and next and remain below 50% for the next two years. Our base-case scenario is that the U.S., Canada, and Mexico will agree on a new trade deal that largely preserves the cross-border links that underpin the North American economy. We are affirming our 'BBB+/A-2' foreign currency and 'A/A-1' local currency sovereign credit ratings on the United Mexican States. We are revising the outlook on the long-term ratings to stable from negative, reflecting diminishing risk that the government's direct debt burden, combined with our future assessment of potential contingent liabilities (especially from nonfinancial public enterprises), could materially worsen our overall debt assessment over

...OVERVIEW + We expect that Mexico's general government debt burden will hover around 45% of GDP this year and next and remain below 50% for the next two years. + Our base-case scenario is that the U.S., Canada, and Mexico will agree on a new trade deal that largely preserves the cross-border links that underpin the North American economy. + We are affirming our '###+/A-2' foreign currency and 'A/A-1' local currency sovereign credit ratings on the United Mexican States. + We are revising the outlook on the long-term ratings to stable from negative, reflecting diminishing risk that the government's direct debt burden, combined with our future assessment of potential contingent liabilities (especially from nonfinancial public enterprises), could materially worsen our overall debt assessment over the next 24 months. RATING ACTION On July 18, 2017, S&P Global Ratings affirmed its '###+/A-2' foreign currency and its 'A/A-1' local currency long-term and short-term sovereign credit ratings on the...

Ratings Action