(Reuters) – 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.
(Reporting by Stefanie Eschenbacher in Mexico City and Ahmed Farhatha in Bengaluru, Editing by Anil D’Silva and Cynthia Osterman)
