Fitch downgrades five Mexico governments

Fitch Ratings said it downgraded the long-term local-currency issuer default ratings for five local governments in Mexico to BBB from BBB+.

The outlook was revised to stable from negative.

The governments downgraded include Estado de Guanajuato, Estado de Aguascalientes, Municipio de Corregidora QRO, Municipio de Chihuahua CHIH and Municipio de San Pedro Garza Garcia NL.

The downgrades follow the recent downgrade of the Mexican sovereign ratings, Fitch explained.

The downgrades reflect a combination of the increased risk to the sovereign's public finances from Pemex's deteriorating credit profile, together with ongoing weakness in the macroeconomic outlook, the agency said.

These are exacerbated by external threats from trade tensions, some domestic policy uncertainty and ongoing fiscal constraints, Fitch said.

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