(Corrects to say Moody's has Mexico on a negative perspective,
not on watch for a credit downgrade)
MEXICO CITY Feb 6 Moody's rating agency, which
has put Mexico's credit on a negative perspective, on Monday
said the Mexican government's debt rose more than expected last
year and weak growth could further pressure policymakers this
"Worse-than-expected fiscal performance is credit negative
for Mexico and weighs on its creditworthiness amid muted
economic activity and rising tensions with the United States,
its main trade partner, following the U.S. presidential
election," Moody's Mexico analyst Jaime Reusche wrote in a
The report cited data from the country's Ministry of
Finance, showing the federal government deficit increasing to
2.9 percent of GDP in 2016, up from 2.8 percent in 2015.
The ratings service had expected fiscal consolidation and a
deficit reduction to 2.5 percent of GDP for 2016, it said.
The negative outlook comes as economists have slashed their
outlooks for growth this year due to risks that policies
implemented by U.S. President Donald Trump could crimp trade
with Latin America's second-largest economy and hit investments.
In 2016, Moody's affirmed Mexico's sovereign rating to A3
and changed its outlook from stable to negative.
(Reporting by Natalie Schachar and Michael O'Boyle; Editing by