KBRA Affirms BBB/K2 Ratings for Mexico; Outlook Stable
2 May 2025 | New York
KBRA affirms Mexico’s long-term issuer ratings of BBB. KBRA also affirms the short-term issuer ratings of K2. The Outlook on the long-term ratings is Stable.
This credit rating is an unsolicited credit rating. | |
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With Rated Entity or Related Third-Party Participation | Yes |
With Access to Internal Documents | No |
With Access to Management | Yes |
The affirmation of the ratings reflects Mexico’s well-managed economy, anchored by prudent fiscal policy, a flexible exchange rate, and an independent central bank. While 2024 saw a temporary pause in fiscal consolidation due to pre-election spending and increased capital outlays, fiscal discipline is expected to resume. Challenges include a likely U.S. slowdown, exposure to tariffs, and limited domestic policy support for investment, alongside persistent fiscal risks from low revenue yields and weak Petróleos Mexicanos’ (Pemex) finances. However, strong risk management practices, Mexico’s strategic economic ties to the U.S., ongoing the United States–Mexico–Canada Agreement (USMCA) compliance, and nearshoring trends support long-term resilience and a Stable Outlook.
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