Mexican finance minister 'very concerned' about country's downgrade

Mexican Finance Minister Arturo Herrera said on Thursday that he is "very concerned" about the country's ratings downgrade but added that the decision is understandable under the current circumstances.

Fitch Ratings on Wednesday downgraded Mexico's sovereign rating to one notch above speculative grade, or "junk", on fears that the economic shock caused by the novel coronavirus will cause a "severe recession" this year. The country's declining creditworthiness is a blow to President Andres Manuel Lopez Obrador.

Mexico's economy had already tipped into recession in 2019 and the coronavirus, which causes a respiratory illness called COVID-19, has stoked fears of an even sharper downturn this year.