In yo face, Somalia!
So this just in from Moody’s Investor Service. Mexico’s investment grade remains solid and talk of Mexico becoming a “failed state” is “far fetched”. From the article:
Moody’s did acknowledge issues such as rising crime and violence, end of the oil hedge in 2010 that buffers government revenues against oil price fluctuations and subsequent need for possibly higher taxes, issuing debt and lower spending, an increasingly severe economic downturn, and structural issues.
Still, it says these do not fit the general profile of a failed state, such as Somalia, and that Mexico’s credit profile remains in line with peers of the sovereign Baa credit rating group (Mexico is rated Baa1, three grades into investment grade).