Fitch lowers Mexico's credit rating on oil decline

[phantom power]

MEXICO CITY — Fitch Ratings downgraded Mexico's credit rating Monday, saying dependence on a flagging oil sector has weakened the country's ability to weather financial problems.

Mexico's rating remained at investment grade, but the downgrade will bring a rise in the government's borrowing costs.

Fitch said decreased oil production has already accentuated economic problems in Mexico and output could continue to decline. Fitch said it lowered Mexico's foreign currency Issuer Default Rating to BBB from BBB+ and its local currency IDR to BBB+ from A-.

Oil income makes up more than a third of Mexico's public sector revenues, but production has been falling as reserves dry up.

http://www.google.com/hostednews/ap/article/ALeqM5hB4Ef...

[Systematic Chaos]

1. There's only one way to handle this.

I say that starting immediately, we begin building a 50-foot Wall of Squeegees (tm) along the border with Mexico.

This will serve two major purposes: The first will be to keep those illegals out, and the second would be so that there's a steady supply of squeegees for all those solar farms I just know they'll be building soon down in the desert.

[phantom power]

2. You are the wind beneath my wings.

[hatrack]

3. And so it begins . . .

Watch for this story - and many more like it in the future - to be piloted resolutely beneath the non-business press radar for years to come.

[phantom power]

4. While reading this story, a thought occurred to me...

the credit rating of the entire human species ought to be downgraded. To something in the neighborhood of "junk bond"

[hatrack]

5. I was thinking either "Default" or "Danger of Default" . . .

Perhaps the latter is more accurate?

[Javaman]

6. After one of the mayors of a Mexican border town just admitted that the gangs now control

the city, my prediction of a Mexican civil war or something like that gets a little bit closer. I say within 10 years Mexico will be at war over something and we will get massive spill over.

Living in Texas, I have been closely watching events, reported and unreported, closely.

Canteral losing steam, price of corn sky rocketing, deficits in their budget, rising taxes to cover the loss, border skirmishes, gangs using grenades, drug mafia's controlling cities, mexican army ineffective to control anything, the always corrupt government, etc...

Just a matter of time.

[pscot]

7. Hush. You'll have Black Jack Pershing

stirring in his grave.