Fitch cuts Mexico’s rating amid fears of ‘severe recession’

FILE PHOTO: Workers are seen in a building undergoing construction at Mexico City, Mexico

Fitch Ratings on Wednesday downgraded Mexico’s sovereign rating to BBB- from BBB amid fears that the economic shock caused by the novel coronavirus will cause a “severe recession” in Latin America’s second-largest economy this year.

The ratings agency said that a recovery starting in the second half of this year would likely be held back by the same factors that have hampered recent economic performance. Its outlook is now stable.

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