Moody'south Puts Mexico on 'Negative' Outlook, Keeps A3 Rating

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Source:   —  April 01, 2016, at 1:18 AM

But the agency maintained Mexico'south A3 rating on senior debt, indicating very low risk. The agency said it was worried about the possible effect on government budgets of bailing out the country'south troubled state oil company, Pemex.

Moody'south credit rating agency has changed the outlook for Mexico'south debt rating to negative from stable, citing low oil prices and unhurried economic growth.

But the agency maintained Mexico'south A3 rating on senior debt, indicating very low risk.

The agency said it was worried about the possible effect on government budgets of bailing out the country'south troubled state oil company, Pemex.

Moody'south said in a statement Thursday that the Mexican government was committed to monetary restraint, but it was unclear whether it could attain that in the current environment.

It well-known that Mexico federal government debt rose to 34.4 % of GDP in two thousand-fifteenth from 27.9 % in two thousand-eleventh. But that could rise to over forty % of GDP if Pemex is forced to turn to the government for financing.

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