[ad_1]
The effects on the financial and economic sector have been immediate and the cancellation of NAIM has resulted in a reduction of the HR perspective compared to Mexico, considering that this creates a climate of uncertainty and mistrust.
Mexico City.- The ratings agency HR Ratings is not expecting too much to send a negative signal to the country because the cancellation of the New Mexico International Airport (NAIM) became official. modified its estimates and projections.
On the one hand, it has ratified the long-term rating of HR A- (G) and the short-term rating of HR2 (G) for Mexico's sovereign debt, but also changed the perspective from "stable" to "negative"This is the result of Andrés Manuel López Obrador's announcement of the result of the public consultation.
This may interest you: Costs and effects of NAIM cancellation; BBVA Bancomer and USB give their point of view
Exchange rate and debt pressure
The decision was made considering the created environment and the complications that this measure may cause in certain economic indicators.
One of the main risks is the depreciation of the exchange rate, where the peso lost its strength and exceeded for a few moments the bar of 20 dollars per dollar. According to HR Ratings, these negative variations can be maintained, which would lead to an increase in the interest rate and affect the public debt.
Thus, the rating agency ensures that "Complicate the maintenance of your estimate of net budget debt 40.8% of gross domestic product (GDP) at the end of 2018, or 39.4% as of August 7th. "
Loss of trustworthy
In addition, HR Ratings assesses a factor that can be decisive for the performance of the national economy and is related to loss of investor confidence and the financial markets.
"For the moment, we consider that a loss of confidence would have negative consequences for public finances and for the economy in general"Said the rating agency.
All the more so as it can generate a complicated cycle, where prevails a "greater volatility of the markets to deteriorate the exchange rate, increase long-term interest rates and there will be stronger pressures from risk indicators as recently observed. "
It could also be transferred to difficulty obtaining credits, financing or investors for infrastructure projects planned by the new government, which would stop the flow of investments.
France clarifies its relationship with AMLO and the Santa Lucia study
Deterioration of investments
Thus, "a lower level of credibility and confidence in the execution of contracts would result in deterioration of the investment, both national and foreign direct, "said the agency in a report that picks up Notimex.
When we consider that the investment has been "a determinant of economic growth", Judge essential to await the measures or actions proposed by the new government, which will also determine the prospects of qualification of the ruler of Mexico.
For this reason, HR Ratings announced that "it will be important to evaluate the effectiveness of the possible measures of the new government mitigate the negative effects of NAIM cancellation decisions. "
Finally, it will pay particular attention to "elements likely to reflect the detachment of institutions or breach of contract by the government, which would have a direct impact on the rating of sovereign credit, "concluded the rating agency.
follow us on Facebook – Twitter – Instagram – Telegram
[ad_2]
Source link
