S&P Cuts Mexico Outlook to Negative as Debt Seen Rising to 54% of GDP
Updated
Updated · Reuters · May 12
S&P Cuts Mexico Outlook to Negative as Debt Seen Rising to 54% of GDP
8 articles · Updated · Reuters · May 12
Mexico’s sovereign outlook was lowered to negative from stable by S&P, which kept the country’s foreign-currency rating at BBB and local-currency rating at BBB+.
S&P said weak growth, rigid spending and limited fiscal flexibility could slow consolidation enough to lift the general government deficit to 4.8% of GDP in 2026.
Net government debt is now projected to climb to about 54% of GDP by 2029 from 49% in 2025, with interest costs rising faster than expected.
Pemex and CFE remain a key strain on public finances, while fuel-price support through forgone taxes and soft economic activity add pressure.
Strong U.S. trade ties should persist, but uncertainty over renegotiating the free trade agreement is already weighing on investment sentiment.
Is Mexico’s multi-billion dollar support for its state oil company a strategic investment or a path to fiscal ruin?
Can Mexico's nearshoring boom overcome the mounting fiscal risks from its domestic policies?