The ratings of the Latin countries would be subject to greater pressure in the coming months: Fitch

Ratings from Latin American countries would face greater negative pressures due to a combination of tighter external financing conditions, weak economic growth and internal risks of each country said Thursday the agency Fitch Ratings.

"Although most of the sovereign ratings of the region remain stable, it is still possible that ratings worsen with more countries in Negative prospects than in a positive outlook ", said # 39; agency. noting that in the last two quarters, the note has been reduced to two Latin American countries (Ecuador and Nicaragua), while the outlook for three other countries (Argentina, Aruba and Uruguay) has been revised on the decline.

In the case of Argentina, its agreement with the IMF reinforces its credit profile of the sovereign, after a dramatic currency sale and a prospect of rapid growth at the beginning of the year, but the risks of Execution persist, especially due to the 2019 elections and the downfall of President Macri's popularity rating.

On the other hand, he ensures that the two largest economies in the region are ready for a change of leadership. In Brazil, the results of the first round of elections revealed that Jair Bolsonaro of the Social-Liberal Party had a competitive advantage over Fernando Haddad of the Workers' Party in the second round, to be held on October 28, Andrés Manuel López Obrador should take possession of the ship in Mexico.

"Uncertainties persist as to the pace and extent of tax reforms that the next government can implement in light of Brazil's large budget deficit and the burden In Mexico, the 2019 budget will provide more clarity on how the new administration of López Obrador intends to balance fiscal discipline with its aspirations to increase social and capital spending ", he said. -he declares.