Fitch Affirms Mexico's Credit Rating Amid Uncertain Reforms

Fitch Ratings has affirmed Mexico's long-term foreign-currency issuer default rating at 'BBB-' with a stable outlook. While proposed judicial reforms could negatively impact Mexico's institutional profile, the severity remains uncertain. Economic activity is expected to improve this year, with a slight slowdown in growth anticipated next year.

Fitch Ratings has affirmed Mexico's long-term foreign-currency issuer default rating at 'BBB-' while maintaining a stable outlook. Despite concerns about proposed judicial reforms possibly affecting Mexico's institutional profile, it's too early to determine the exact impact.

Fitch also highlighted the uncertainty surrounding Mexico's incoming administration's efforts to reduce the deficit to levels that align with a stable debt-to-GDP trajectory. The ratings agency expects the Mexican economy to rebound for the remainder of this year following a sluggish first quarter.

However, Fitch anticipates a slight slowdown in economic growth next year. Increased trade tensions with the U.S., influenced by electoral outcomes, could also make Mexico more vulnerable.

(With inputs from agencies.)