S&P ups Mexico

Standard & Poor's said it raised its long-term foreign currency sovereign credit ratings on the United Mexican States to BBB+ from BBB and raised its short-term foreign currency rating to A-2 from A-3.

S&P said it also raised its long-term local currency credit ratings on Mexico to A+ from A.

The short-term local currency rating remains A-1, the agency said, noting that the outlook on all the long-term ratings is stable.

The upgrade reflects both the expected strengthening of fiscal revenues in coming years and indications of renewed political dynamism that reduces the fear of policy gridlock in Mexico, S&P added, stating that the recent approval of fiscal reform is an important step in reducing the Mexican government's fiscal vulnerability to volatile oil prices and in meeting growing spending pressures.

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