Bloomberg News

Mexican Corporate Ratings Vulnerable to Europe, Moody’s Says

June 12, 2012

Mexican corporate credit ratings are at risk of being lowered as Europe’s debt crisis imperils expansion in the Latin American country, according to Moody’s Investors Service.

“The ongoing sovereign debt crisis in Europe combined with the slowdown in China’s economic growth could ultimately pressure the Mexican economy,” Alonso Sanchez Rosario, an analyst at Moody’s in Mexico City, said in an e-mailed statement. The situation “could result in corporate credit quality deterioration in the country,” he wrote.

Of the 23 companies Moody’s rates in Mexico, 19 have stable outlooks. Four of them have a negative outlook, which means they could face a downgrade in the next 12 to 18 months, according to the report.

Moody’s cut the ratings of Axtel SAB, Empresas ICA SAB and Grupo Papelero Scribe SA in the past eight months, citing liquidity problems.

To contact the reporter on this story: Veronica Navarro Espinosa in New York at

To contact the editor responsible for this story: David Papadopoulos at

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