Fitch upgrades Mexico credit rating over reform drive

Fitch Ratings upgraded Mexico's sovereign credit rating on Wednesday, citing what it called the country's strong economic fundamentals and commitment to structural reforms. The international ratings agency increased Mexico's credit score by one notch to BBB+ from BBB and stated that its rating outlook was stable. "The upgrade of Mexico's sovereign ratings reflects its strong macroeconomic fundamentals, including the absence of macro-financial imbalances, consistent adherence to its inflation targeting and flexible exchange rate regimes," Fitch said in a statement. The ratings agency also praised the "greater than anticipated commitment of the new administration and Congress to pass structural reforms." The ratings uptick came after President Enrique Pena Nieto and opposition parties presented their latest reform plan, a banking overhaul to increase the availability of loans and reduce interest rates. Pena Nieto's Institutional Revolutionary Party (PRI) signed an unprecedented pact with the conservative National Action Party (PAN) and leftist Democratic Revolution Party (PRD) in order to pass much-needed reforms. Since Pena Nieto took office in December, the pact has led to the approval of a major overhaul of the education system and legislation to open competition in the highly concentrated telecommunications industry. The Pact for Mexico nearly collapsed last month after the PAN and PRD accused the ruling party of using social programs to woo voters in regional elections in July. The deal was saved this week with the PRI agreeing to take measures to prevent such vote-buying schemes.