Financial Times – Mexico, that most stable and reliable of emerging markets, may be sliding towards a credit rating downgrade. Last week S&P Global Ratings revised its outlook to negative from stable and warned it saw a one-in-three chance of a ratings cut in the next two years due to substandard growth and rising sovereign borrowings.
That caught up with Moody’s, which had lowered its own outlook back in March. And while Fitch, the third of the big three rating agencies, still sees Mexico’s rating as stable, it too warned in July of risks regarding the economy and fiscal consolidation. The problem is the pernicious interplay between growth and debt.