Mexico's long term foreign currency rating was affirmed at 'BBB+' with a stable outlook, the global credit rating agency Fitch Ratings announced on Friday.
The country's credit rating is supported by its diversified economy, disciplined economic policies, and macroeconomic stability, while the imbalances are contained, the agency said in a statement.
Some of the constraints on Mexico's economy are structural weaknesses in public finances, shallow credit penetration, and institutional weaknesses, Fitch said.
'Mexico's economy has been resilient to a multitude of shocks in recent years,' the statement said.
The economy grew by 2 percent last year, Fitch noted, adding that it expects higher growth due to stronger demand from the U.S., higher oil prices, stabilizing oil production, and continued implementation of structural reforms in the country.
Fitch forecasts Mexico's economic growth to average 2.4 percent during 2018-2019 period.
The rating agency warned about the possible impact of North America Free Trade Agreement (NAFTA) negotiations on Mexico.
'... persistent uncertainties surrounding the NAFTA negotiations and the 2018 election cycle could continue to cloud the investment and growth backdrop,' it said.
General elections in Mexico are scheduled to be held on July 1, in which voters will elect president and members of the parliament.
Fitch stressed that termination of NAFTA could hurt Mexico's medium-term investment and growth prospects.
By Ovunc Kutlu in New York
Anadolu Agency
energy@aa.com.tr