The new fiscal package planned by the Mexican government this week helped Mexico
maintain its "investment grade" rating from risk experts at Moody's.
Financial experts J.P. Morgan also expressed confidence that the grade
would be retained by other agencies.
The confirmation of the grade from
Moody's indicates they have faith in the new government budget and remain
confident that Mexican government bonds and other investments in Mexico are a
lower risk than many other emerging market economies.
In a recent report,
Moody's said,"Mexican mutual fund investors now number almost two million in
more than 500 fixed-income and equity funds ... Mexico can now boast of being
the second-largest mutual fund market in Latin America behind Brazil and is one
of the fastest growing markets in the world."
A little like credit
ratings for individuals,such investment grades for countries indicate the level
of risk for investing. They take into account political risk and are used by
investors looking to put money into overseas financial markets.
large credit rating agencies,Fitch and S&P,are expected to publish their
latest grade for Mexico in the coming days.