Orlando Delgado Selley: Qualifiers: deficit and public debt

While the Mexican economy shows signs that it is progressing better than expected, three international rating agencies have decided that the Mexican debt has a lower rating and a fourth maintained the credit rating, but changed the outlook from stable to negative. In all four cases, this degradation brings us closer to losing investment grade. Losing it means that the cost of borrowing sovereign debt, that is, the Mexican government’s debt issues abroad, would have to pay a higher rate, and immediately after, the debt issues of Mexican private companies would also have to pay a higher interest rate in international markets.