March 10, 2020 / 2:43 PM / 3 months ago

S&P Global: Oil price crash and virus will hurt Mexico

LONDON, March 10 (Reuters) - The recent oil price crash and fallout from coronavirus are set to hurt Mexico’s economy and exacerbate pressure points that prompted ratings agency S&P Global to put a negative outlook on the country, a senior official at the firm said on Tuesday.

“Mexico will be hurt by these recent developments, it has a significant oil sector and is closely connected to the U.S. economy,” said Joydeep Mukherji, a managing director for sovereign ratings Americas at S&P Global.

The agency’s negative outlook stresses two things, said Mukherji, which were concerns over trend economic growth and the energy sector posing a large contingent liability potentially to the sovereign.

“To the extent that oil prices stay low, and oil growth stays low and U.S. growth goes down you can see both these factors exacerbated,” he added.

S&P has a BBB+ rating on Mexico and added a negative outlook in March 2019, which it confirmed in December. (Reporting by Karin Strohecker, editing by Dhara Ranasinghe)

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