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It’s been a good two days for Mexico. First Donald Trump decided not to nix Nafta. Then Moody’s, which has had Mexico’s sovereign ratings on watch for possible downgrade, upheld its A3 rating.

Moody’s, which said it had also upheld state energy company Pemex’s Baa3 rating, said a key determinant had been the “clear reduction” of a risk that Pemex’s finances could suffer a shock.

It maintained the negative outlook, however, because of the lingering Nafta risk and the impact of any change to US trade policy on Mexico’s fiscal consolidation. Mr Trump said on Wednesday he would not scrap the pact for now after a furore over reports he was preparing the withdrawal process.

Mexico was upgraded to A3 in 2014.

Copyright The Financial Times Limited 2017. All rights reserved.

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