Mexico's credit rating ratified by Japan Credit Rating
The Ministry of Finance and Public Credit (SHCP) informed that the Japanese rating agency JCR ratified Mexico's credit rating for Mexican debt in foreign currency at A-, a level four notches above investment grade; and in local currency at A+, with a negative outlook.
According to the SHCP, the JCR agency stated that Mexico's credit rating is supported by the resilience the country has shown to external shocks, the solid export-oriented manufacturing industry, and flexible exchange and monetary policies.
The agency said that the rating agency highlighted that the federal government has promoted policies to eradicate corruption and improve the social welfare of the most vulnerable groups, as well as measures to combat the covid-19 pandemic, in which Mexico has prioritized these groups, within a framework of fiscal discipline.
He added that the rating agency noted that debt as a proportion of gross domestic product (GDP) remains at manageable levels and highlighted the strengthening of tax revenues and the efforts made by the current administration to achieve the above.
For the SHCP, this allows Mexico to continue to have access under favorable conditions to the global debt market, particularly the Japanese market, as it recalled that in June 2019 it carried out a bond placement for a historic amount of 1.5 billion dollars, which reached levels of demand never before recorded.