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)
