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Latino Daily News

Friday May 10, 2013

Mexico Gets Credit Upgrade by Fitch

Mexico Gets Credit Upgrade by Fitch

Photo: Mexican Economy

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This week the credit rating firm, Fitch upgraded Mexico’s credit rating from BBB to BBB+.  The one notch increase in the country’s sovereign credit rating was given in great part for Mexico’s new President Enrqiue Peña Nieto’s bank reform efforts.

The international credit rating agency also cited the country’s strong economic outlook and commitment to transparency in their financial systems.

Peña Nieto recently announced banking reform laws that would increase transparency, increase number of loans made and reduce interest rates for those seeking bank loans.  In addition the peso is at its strongest levels since August 2011, according to Bloomberg.

The BBB rating gets Mexico out of low investment grade level credit allowing it to borrow at more competitive rates.  Mexico has the second largest Latin American economy after Brazil.  This past March S&P also upgraded Mexico’s credit rating from stable to positive at a Baa1.

Both credit rating agency’s now view Mexico economic picture as stable.