Fitch lowers Mexico outlook to negative, Chile to stable

Fitch Ratings said it has revised Mexico's outlook to negative from stable, and Chile's outlook to stable from positive, for both their long-term foreign and local currency issuer default ratings.

This follows the conclusion by Fitch of a global review of the sovereign ratings of 17 major investment-grade emerging market economies.

At the same time, Fitch said it has affirmed the local and foreign currency issuer default ratings and stable outlooks for Brazil and Peru.

Investment-grade Latin sovereigns have seen increased financial pressures in recent weeks, as illustrated by volatile market moves in equities, credit and currencies, the agency said.

"Global recession, falling commodity prices and tighter external liquidity conditions are expected to buffet all the investment-grade Latin sovereigns to varying degree," said Shelly Shetty, senior director in Fitch's sovereign group.

Affected ratings include:

• Chile's long-term foreign currency issuer default rating affirmed at A; outlook changed to stable from positive; long-term local currency issuer default rating affirmed at A+; outlook changed to stable from positive; short-term foreign currency issuer default rating affirmed at F1; and country ceiling affirmed at AA;

• Mexico's long-term foreign currency issuer default rating affirmed at BBB+; outlook changed to negative from stable; long-term local currency issuer default rating affirmed at A-; outlook changed to negative from stable; short-term foreign currency issuer default rating affirmed at F2; and country ceiling affirmed at A;

• Brazil's long-term foreign currency issuer default rating affirmed at BBB-; outlook Remains stable; long-term local currency issuer default rating affirmed at BBB-; outlook Remains stable; short-term foreign currency issuer default rating affirmed at F3; and country ceiling affirmed at BBB; and

Peru's long-term foreign currency issuer default rating affirmed at BBB-; outlook Remains stable; long-term local currency issuer default rating affirmed at BBB; outlook remains stable; short-term foreign currency issuer default rating affirmed at F3; and country ceiling affirmed at BBB.

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