S&P Revises Mexico's Outlook to 'Negative' on Debt, Growth Concerns
S&P said Mexico’s debt could rise to 54% of GDP by 2029 if fiscal deficits stay wide and energy support continues.
- On Tuesday, Standard and Poor's Global Ratings revised Mexico's credit outlook from stable to negative, citing rising debt levels, weak fiscal results, and slowing economic growth.
- Persistent financial support for Petroleos Mexicanos and the Federal Electricity Commission strains public finances, contributing to a projected 4.8% government deficit in 2026.
- Projections show net general government debt rising to about 54% of GDP by 2029 from 49% in 2025, while the agency forecasts just 1% economic growth for Mexico in 2026.
- Uncertainty surrounding the United States-Mexico-Canada free-trade agreement renegotiation weakens investor confidence, according to the agency, though The Finance Ministry noted the rating remains within investment grade.
- Standard and Poor's indicated it may lower the rating within the next 24 months if Mexico fails to reduce its fiscal deficit or if trade ties with the United States deteriorate.
24 Articles
24 Articles
S&P downgrades Mexico's rating and sees just 1% growth in 2026
Standard & Poor’s (S&P) has downgraded Mexico’s rating from stable to negative, citing the risk of fiscal consolidation due to low economic growth and rising public debt. The move, published in a report issued Tuesday, put the long-term foreign currency rating at ‘BBB’ and the local currency rating at ‘BBB+’. S&P warned that the drain on the public treasury from the support of the Federal Electricity Commission (CFE) and Petróleos Mexicanos (Pem…
Standard & Poor’s (S&P) ratified the rating of Mexico’s sovereign debt in BBB – even in terms of investment – but changed the outlook to negative, which could lead to a reduction in the next 24 months. Following this deterioration is the low economic growth, insufficient to help reduce the public deficit more rapidly, explained the firm’s risk.
S&P Global Ratings reviewed its perspective on Mexico’s long-term ratings from “stable” to “negative” due to the weakening of fiscal flexibility, although it confirmed its rating in foreign currency in “BBB” and in local currency in “BBB+”. “The negative perspective reflects the risk of very slow fiscal consolidation, mainly due to low economic growth, resulting in an increase in public debt greater than expected and a greater burden of interest…
The qualifier warned that it could lower Mexico’s rating if fiscal deficits persist or the trade relationship with the US worsens.
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