Mexico’s credit rating was raised one level to A3 by Moody’s Investors Service, which cited moves to open up the energy industry to foreign investment and broaden sources of tax revenue.
Mexico’s rating from Moody’s is in line with those of Malta and Malaysia, and four steps above the junk-grade threshold that signals high-yield, high-risk debt. The new rating is one step higher than comparable levels at Fitch Ratings and Standard & Poor’s. The country’s peso, which had been down prior to the announcement, strengthened 0.4 percent to 13.2686 per dollar at 1:50 p.m. in Mexico City.
Moody’s cited economic reforms signed by President Enrique Pena Nieto last year that the government projects will boost growth in Latin America’s second-biggest economy. Mexican lawmakers approved at least 10 constitutional amendments in Pena Nieto’s first full year in office, including breaking up the state’s monopoly on oil production and increasing competition in the telecommunications industry.