MEXICO CITY - The Mexican government faces a one-in-three chance of having its credit rating downgraded over the coming year, as public finances struggle with mounting liabilities and slowing growth, rating agency Standard & Poor’s said on Friday.
In a statement, S&P emphasized that Lopez Obrador’s plans to reduce the private sector’s role in the Mexican energy sector while boosting spending on cash-strapped national oil company Pemex raised concerns for government finances. The peso currency, which has reacted negatively to recent downgrades, ceased trading for the weekend before S&P published their latest guidance on Mexico.
The production slide has weighed on the government’s fiscal health as it implicitly guarantees Pemex finances.
1 in 2 chance that PartidoMorenaMx & lopezobrador_ respond: 'This is a 'compló' by the Americans to undermine a legitimate social movement of the 21st century!' - patheticmarxistnarratives vivachavez
Not enough oil reserves?