S&P Upgrades Mexico Credit Rating, Hails Energy Bill


NEW YORK/MEXICO CITY, Dec 19 (Reuters) - Standard & Poor's on Thursday raised its sovereign long-term foreign currency credit rating for Mexico by one notch to BBB-plus days after the country approved the biggest shake-up of its energy sector since 1938 in a bid to boost growth.

The upgrade, which moves Mexico higher into investment-grade territory with a stable outlook, brings S&P in line with both Moody's Investors Service's Baa1 rating with a stable outlook and Fitch Ratings' BBB-plus with a stable outlook.

Calling the government's energy reform to open up Mexico's 75-year-old oil and gas monopoly to private investment "a watershed moment," S&P said Mexico's prospects were brightening.

"It's hard to ignore such a significant change that can make a meaningful change for the growth outlook," S&P sovereign credit analyst Lisa Schineller said.

The energy reform, supported by changes in the tax framework, bolstered Mexico's growth potential and fiscal flexibility in the medium term, S&P said in a statement.

The radical shake-up of the energy sector is the cornerstone of a raft of reforms championed by President Enrique Pena Nieto aimed at boosting growth in Latin America's No. 2 economy, which has long lagged emerging market peers.

Pena Nieto has overseen passage of laws to overhaul the education system, boost competition in telecommunications, spur lending, and increase a weak tax take, partly to ease the fiscal burden on ailing state oil giant Pemex.


View Full Article

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Safety and Environmental Management System Specialist (SEMS)
Expertise: Environmental, Safety & Training|Regulatory Compliance|Safety Engineering
Location: Houston, TX
Field Operations Supervisor II Job
Expertise: Field Service Tech|Refinery / Plant Operations Supervisor|Regulatory Compliance
Location: Minneapolis, MN
Contract Administrator
Expertise: Contracts Administration
Location: Chesapeake, VA
search for more jobs

Brent Crude Oil : $49.98/BBL 1.59%
Light Crude Oil : $49.18/BBL 1.56%
Natural Gas : $2.73/MMBtu 1.44%
Updated in last 24 hours