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Moody's Downgrades Mexico to Investment Grade Floor Amid Fiscal Deterioration

Moody's Ratings moved Mexico's credit rating to the lowest rung of investment grade status on Tuesday, dealing a significant blow to Latin America's second-largest economy. The downgrade reflects mounting concerns over Mexico's weakening fiscal position and deteriorating debt dynamics. S&P Global separately adjusted Mexico's credit outlook to negative from stable, citing persistent fiscal underperformance and sluggish economic expansion. Both actions underscore investor alarm that Mexico could slip into junk status without meaningful fiscal consolidation. Rising debt burdens and lackluster growth prospects are pressuring policymakers to implement deficit reduction measures. The downgrades carry critical implications for capital flows and borrowing costs across the region.