trending Market Intelligence /marketintelligence/en/news-insights/trending/9l0b7GORw2CMzWMSJHST8Q2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

Without NAFTA, Mexico could be downgraded, Moody's says

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

StreetTalk – Episode 70: Banks' Liquidity Conundrum Could Fuel M&A Activity


Without NAFTA, Mexico could be downgraded, Moody's says

Mexico's A3 sovereign credit rating could be downgraded to Baa1 by Moody's if the North American Free Trade Agreement is terminated, the head of the rating agency in Mexico said, according to a report by El Financiero.

Speaking at a financial-sector event Oct. 18, Alberto Jones Tamayo reportedly also said, however, that Mexico would remain an investment grade country with or without NAFTA and no matter who becomes the new Mexican president after next year's elections.

The country's sovereign rating has a negative outlook which Jones Tamayo said was because the country's growth could be temporarily halted if NAFTA is concluded.

"It is not the end if NAFTA is canceled, the worst that could happen is that Moody's would lower Mexico's rating to Baa1, because exports would fall and the Mexican economy would have a contraction. But that rating is still very high and good," the Moody's executive reportedly said.