Moody’s Set to Resolve Negative Outlook on Mexico’s Credit Rating by June

Mexico faces a critical credit rating decision as Moody's prepares to resolve a negative outlook assigned in late 2024. A potential downgrade could increase borrowing costs and trigger capital flight from the Latin American economy.

• Moody's to resolve negative outlook by June end
• Current Baa2 rating is two notches above junk status
• Fiscal health remains the primary concern for analysts
• External risks include USMCA renegotiations and Middle East tensions
• Potential downgrade risks include higher borrowing costs and capital outflows