Moody's Downgrades Mexico's Credit Rating Outlook

International credit rating agency Moody's has confirmed Mexico's credit rating while downgrading its outlook, citing political risks and institutional weaknesses. According to Moody's statement, the country's senior unsecured long-term credit rating remains at "Baa2." However, the outlook has been changed from "stable" to "negative." Moody's indicated that this change in outlook reflects concerns regarding the weakening of policy frameworks and institutional environments that carry risks of undermining fiscal and economic outcomes. The statement noted, "Deteriorating debt affordability and increasing government spending rigidities complicate fiscal consolidation following the expansion of this year's government deficit. At the same time, constitutional revisions pose a risk of undermining the checks and balances of the country's judicial system, which could potentially have a negative impact on Mexico's economic and financial strength."