How much does Mexico pay rating agencies S&P, Moody's and Fitch?

The country pays an annual fee to the rating agencies to provide an analysis and evaluation service to the Mexican government. This is what their services cost.

Three big credit rating agencies. Image: Knowledge@Wharton
Three big credit rating agencies. Image: Knowledge@Wharton

Mexico annually pays $900,000 dollars to the main rating agencies in the world, revealed a federal government report this Thursday.

In a brief informative note, it explained that Moody's, Fitch Ratings and Standard and Poors provide service to the federal administration of analysis, evaluation and credit determination of the government.

Moody's

The contract with Moody's is still in force and was renewed on May 15, 2018, with payments broken down as follows:

300 thousand dollars (2017-2018)

300 thousand dollars (2018-2019)

300 thousand dollars (2019-2020)

Fitch

The contract with this rating agency was recently renewed on October 23, 2019, so it is also in force.

300 thousand dollars (2019-2020)

300,000 dollars (2020-2021)

310 thousand dollars (2021-2022)

S&P

It is the only one with an expired contract, but is expected to renew the contract tomorrow, October 25.

300 thousand dollars (2019-2020)

300,000 dollars (2020-2021)

310 thousand dollars (2021-2022)

It explained that "the agencies give an overview of the issuer's structural capacity and environment to meet its payment commitments. The ratings express an agency's opinion about an issuer's ability and willingness to pay, as well as its ability to meet its financial obligations in a timely manner".

Source: Milenio

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