Moody's Changes Mexico's Local Currency Country Ceiling
December 25, 2012 "Moody’s"
New York, December 21, 2012 -- Moody's Investors Service adjusted the Mexico's local currency country ceiling to A1 from Aaa. The change in ceiling means that the highest rating that can be assigned to any domestic issuer, or to structured finance securities backed by local currency receivables, will be capped at A1.
The decision to adjust the local currency country ceiling involved a reassessment of country-specific factors centered on economic strength, institutional strength and susceptibility to event risk that led to a realignment of Mexico's ceilings bringing them closer in line with the corresponding sovereign rating. As result, the country ceilings are now placed three notches above the government's Baa1 rating.
Mexico's Baa1 sovereign rating did not change and continues to be underpinned by a track record of policy continuity and institutional arrangements (e.g., fiscal responsibility law) that have strengthened the policymaking framework enhancing predictability. A robust fiscal position remains a key credit strength behind sovereign ratings that is also underpinned by moderate government deficits, low debt ratios, and the sovereign's ability to tap local-currency financing in its domestic market.
Company — Mexico
Full nameUnited Mexican States