South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Morgan Stanley Says China’s Reusable Rocket Progress Poses Long-Term Challenge to SpaceX 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Vietnam’s population hit the 100 million milestone. Where’s it headed? 
Goldman Sachs Says China Competition Weighs More on EU Growth Than Trade Deficit 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Citi Raises TSMC Price Target as AI Chip Demand Strengthens Growth Outlook 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Moody’s Ratings downgraded Mexico’s long-term local and foreign-currency issuer ratings from Baa2 to Baa3 on Tuesday, while revising the outlook to stable from negative. The agency also cut the ratings for Mexico’s senior unsecured shelf and medium-term note (MTN) programs to (P)Baa3 from (P)Baa2, citing growing fiscal challenges and weak economic growth prospects.
The downgrade reflects continued deterioration in Mexico’s fiscal strength, driven by persistent budget deficits, rising public debt and ongoing financial support for state-owned oil company Petroleos Mexicanos (PEMEX). Moody’s said rigid government spending, limited tax revenue and weak economic expansion have reduced the government’s ability to stabilize debt levels.
Mexico’s fiscal deficit stayed close to 5% of GDP in 2025, only slightly below the 5.3% recorded in 2024. As a result, government gross debt climbed to 49.3% of GDP in 2025, compared with 46% in 2024 and 39.8% in 2023. Moody’s expects deficits to remain above 4% of GDP through 2027, pushing the debt burden toward 55% of GDP by 2028.
The rating agency highlighted the financial strain caused by continued support for PEMEX. The Mexican government provided around $35 billion, equivalent to 1.9% of GDP, to the energy company in 2025 and plans to allocate another $14 billion in 2026. Moody’s warned that further assistance will likely be necessary unless PEMEX significantly improves its operations.
Moody’s also lowered Mexico’s GDP growth forecast to below 1% in 2026 and 1.3% in 2027. The agency noted that repeated breaches of fiscal targets since 2023 have weakened confidence in the country’s fiscal policy framework.
Despite the downgrade, Moody’s assigned a stable outlook, pointing to Mexico’s macroeconomic stability, resilient institutions and expectations for gradual economic recovery toward 2% long-term growth.
