Mexico Debt-Rating Downgrade ‘Likely’ on Revenue Plan, BofA Says
 Stephen Kirkland -
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October 22, 2009
The Mexican Congress’ revenue plan probably won’t satisfy credit-rating agencies and a “one-notch downgrade is likely,” BofA Merrill Lynch Global Research wrote in a report.
“If economic recovery falters, international commodity prices retrench and the strong spending inertia, particularly from Mexican states and municipalities, is not properly addressed, a shortfall in tax revenues could remain a latent threat for Mexican public finances,” the brokerage wrote in a report dated Oct. 20.
“In external debt we recommend buying 5- year credit default swaps with a 250 basis-point target.”
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Business News | October 2009 
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