July 16, 2020 / 7:56 PM / 19 days ago

Mexico could lose investment grade rating in 2021: Bank of America

MEXICO CITY (Reuters) - Mexico could lose its investment grade credit rating in 2021, with public debt expected to make up 60% of the country’s gross domestic product this year as the economy contracts sharply, Bank of America said in a report on Thursday.

“We believe the fiscal deterioration along with a very weak economic recovery could lead rating agencies to downgrade Mexico to High Yield in 2021,” the bank said.

Last year, debt made up just 45% of Mexican GDP, it noted.

Reporting by Abraham Gonzalez and Daina Beth Solomon

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