Fitch revises Mexico view to negative

Fitch Ratings said it revised the rating outlook on Mexico's long-term foreign and local currency issuer default ratings to negative from stable and affirmed them at BBB+.

The issue ratings on Mexico's senior unsecured foreign- and local-currency bonds were affirmed at BBB+. The country ceiling was affirmed at A and the short-term foreign and local currency issuer default ratings at F2.

Fitch said the outlook revision reflects increased downside risks to the country's growth outlook and the challenges this could pose for stabilization of the public debt burden.

Growth has been underperforming rating peers and the general government debt burden has been increasing steadily in recent years.

The victory of Donald Trump in the U.S. presidential election has increased economic uncertainty and asset price volatility in Mexico as the president-elect has alluded to renegotiating or terminating the North American Free Trade Agreement (NAFTA) with Mexico and tightening immigration controls, the agency added.

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