Why Did Fitch Downgrade Mexico to 'BBB'?

Why Did Fitch Downgrade Mexico to 'BBB'?

Assessment

Interactive Video

Business, Architecture, Social Studies

University

Hard

Created by

Quizizz Content

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The video discusses the impact of the US-Mexico trade deal on Mexico's credit rating, highlighting the downgrade due to Pemex's growing liabilities and governance issues. It explores the close relationship between Pemex and the government, noting the company's financial struggles and its effect on national debt. The discussion also covers political risks, such as potential tariffs and trade uncertainties, and evaluates AMLO's fiscal and monetary policies, emphasizing the need for economic growth and stability.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was one of the main reasons for Mexico's credit rating downgrade?

Improved governance

Increased tourism

Growing liabilities from Pemex

Rising oil prices

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does Pemex's financial situation affect Mexico's economy?

It boosts foreign investment

It reduces government debt

It strains government finances

It increases tax revenue

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What external factor could potentially impact Mexico's credit rating?

Stable currency

Increased exports

Migration issues

Rising inflation

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What approach has the new Mexican government taken towards fiscal policy?

Increased spending

Orthodox fiscal policy

Reduced taxes

Privatization of state assets

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the key issues affecting Mexico's economic growth?

High inflation rates

Declining oil production

Rising consumer spending

Increased foreign investment

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been the government's stance on energy reforms?

Increasing energy exports

Encouraging private investment

Strengthening Pemex's role

Reducing oil production

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What would help Mexico regain its previous credit rating?

Increased public debt

Higher oil prices

Reduced government support for Pemex

Improved economic growth