Lopez Obrador says a credit rating downgrade would not affect Mexico

MEXICO CITY.- This Tuesday, during his usual morning press conference, the President of Mexico, Andres Manuel Lopez Obradorassured that would not affect a reduction of the Mexico’s credit ratingas international agencies and banks have warned due to the uncertainty that will be caused by the controversial reform to elect by popular vote the Judiciary.

“No (it would not affect), we have very little external debt, last time the experts came, Treasury specialists, and they talk about 25% foreign debt nothing more, of the global debt, and we have reserves in the Bank of Mexico record, then there is no problem, there is nothing to fear,” he replied at his morning conference.

Mexico’s public debt

The public debt Mexico’s net income rose to 47.6% of its gross domestic product (GDP) in the first half of 2024, the Ministry of Economy and Finance revealed in July Ministry of Finance and Public Credit (SHCP), which plans to leave it at 48.6% at the end of López Obrador’s six-year term, who hands over office on October 1st Claudia Sheinbaum Pardo.

But the president dismissed the warnings from entities such as Fitch Ratingswhich maintains the Mexico’s rating at ‘BBB-‘ but notes that the government’s reforms “would negatively affect” the country’s profile, while the US bank Morgan Stanley has already lowered the level of investment to ‘underweight’ o ‘underweight’.

“It’s not to be taken seriously, it’s like the famous posterswith all due respect, the New York Timeshe Washington Posthe Wall Street Journa“l,” he mentioned.

“Star moments” of Mexico

#VIDEO| AMLO replies to rating agencies and brokerages “we understand that you are upset but you cannot even maintain that ours is an inefficient or failed policy because the results are there” says the president of Mexico. pic.twitter.com/uLCr8BC9Fp

— Nacho Rodriguez (El Chapucero) (@NachoRgz) August 27, 2024

The Mexican ruler assured that the country lives “star moments” before the judicial reformwhich was approved this Monday in the Constitutional Affairs Committee of Congresswhich could vote on it in plenary next week, when the ruling party has the necessary majority, of two thirds, to modify the Magna Carta.

Mexico’s economy is strong

The president said that “the Mexico’s economy is solid, strong“and it is one of the most attractive countries for foreign investment,” but financial institutions criticize the judicial reform because “they are complicit in the plundering that occurred” in the country under previous governments.

“This is what we have always maintained; before, these international organizations, especially those linked to finance, were the ones that dominated countries and imposed agendas,” he criticized.

Mexicans would go to the polls to vote for judges, magistrates and ministers of the Supreme Court starting in 2025, if the judicial reform is approved.

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