UPDATE 1-Moody's says could modify Mexico rating this year

(Updates with details)

BUENOS AIRES, June 12 (Reuters) - Moody's Investors Service could modify Mexico's credit rating this year, but the country is in no risk of losing its investment grade, credit analyst Gabriel Torres said on Friday.

"We don't see any problem in the short term with Mexico's ability to pay. Our concern is more in the medium- and long-term," Torres, a vice president at Moody's, said during a presentation in Buenos Aires by telephone.

Moody's currently rates Mexico at Baa1, or three notches into investment-grade territory.

Other agencies have signaled recently that Mexico faces a possible rating downgrade this year if it doesn't reduce its dependency on oil to fund the federal budget.

Oil exports are falling sharply in Mexico, where the government depends on the revenue they generate to fund more than a third of federal spending.

Mexico's tax revenues are equivalent to just 10 percent of gross domestic product, one of the most paltry tax takes in Latin America. Rating agencies have long urged Mexico to boost tax collection.

Torres said Mexico's recession could impact any change in its credit rating.

"It's rare that a rise or fall in economic growth in one year results in a credit change," Torres said. "It has to be brutal, and in the case of Mexico it's bordering on brutal." (Reporting by Damian Wroclavsky; Additional reporting by Jason Lange in Mexico City; Writing by Kevin Gray; Editing by Kenneth Barry)