Moody’s cut its outlook for Mexico’s credit rating on Thursday to negative from stable due to the country’s low economic growth, dicey external environment, and a chance the government may pour more funds into propping up state-owned oil firm Pemex, Reuters reported. The credit rating agency maintained Mexico’s sovereign rating at A3, but said Latin America’s second-largest economy faces challenges in trying to consolidate its finances and stabilize debt levels. A senior finance ministry official said Mexico disagreed with the move. In a news conference, Moody’s said it would wait a year or two before deciding whether to lower Mexico’s sovereign rating. Moody’s still rates Mexico higher than rival ratings agencies, S&P and Fitch. Moody’s said that new government obligations “in the form of possible government support to Pemex, given liquidity pressures at the state-owned oil producer, could further undermine the fiscal consolidation process.” Moody’s also downgraded its rating for Pemex on Thursday to Baa3, from Baa1.
