KBRA Mexico credit rating, USA News (Mexico City): The Ministry of Finance and Public Credit (SHCP) reported that Kroll Bond Rating Agency (KBRA) affirmed Mexico’s sovereign credit rating at BBB and maintained its stable perspective. The agency detailed in a statement that KBRA highlighted the strength of the macroeconomic policy framework, responsible management of public finances, and the economy’s resilience against external shocks.
The agency recognized that these strengths are supported by a flexible exchange rate, the autonomy of the Bank of Mexico, prudent public debt management, and deep commercial integration with the United States. The SHCP noted that the agency anticipates a gradual recovery in economic activity, backed by monetary policy easing, growth in real wages, and strong external demand.
This affirmation coincided with the publication of Mexico’s timely Gross Domestic Product (GDP) estimate for the third quarter. According to the National Institute of Statistics and Geography (Inegi), the GDP indicated a real growth of 0.9 percent compared to the immediate previous quarter with seasonally adjusted figures.
With this registration, the GDP marked two consecutive quarters of advances, although it moderated its pace compared to the 1.4 percent growth observed in the second quarter of the year. KBRA’s rating contrasts with recent adjustments from other firms in the sector. On October 15, HR Ratings cut the country’s sovereign rating from BBB+ to BBB, citing pressures on the fiscal balance. HR Ratings explained in a statement that the downward revision resulted from observed deterioration in main fiscal balances of public finances and a downward revision of economic growth trajectory.
