S & P downgrades Mexican debt

December 14, Xinhua Mexico City, the international main rating agency, Standard and poor, 14th, downgraded Mexico's debt rating, thinking of the "Great Depression" since the worst recession and its oil production and income continued to decline, the government's fiscal outlook is worrying. On that day, the company downgraded Mexico's foreign currency debt rating from BBB to BBB, the second-lowest investment level.　　However, the outlook for the country's credit rating is at a stable level. The company issued a statement saying that, although Mexican President Felipe Calderon has proposed tax increases, but still not enough to enhance the Government's financial strength. Last month, the country unveiled its 2010 budget.　　Analysts point out that Mexico's fiscal deficit next year will reach its highest level in nearly 20 years. The severe recession in America has had a huge impact on the Mexican economy, which relies heavily on exports to the United States. The Mexican central bank expects the country's economy to shrink by 7.5% this year, its biggest drop since the Great Depression.　　In addition, Mexico's oil production has plummeted this year, a blow to Mexico, which relies on the oil industry for nearly 30% of its revenues. At the end of last month, Fitch, another prominent rating agency, downgraded Mexico's sovereign debt rating to its first downgrade in more than 10 years.