The international rating agency Standar and Poors said Mexico has important challenges in corruption and security.
U.S. rating agency Standard and Poors said on Wednesday that corruption and violence in Mexico are major challenges that could affect the country's economic panorama.
“The disappearance and death of 43 students in the city of Iguala, Guerrero in September 2014 highlights the important challenges that Mexico has to control violence related with drugs trafficking,” said the agency, according to Mexican newspaper Reforma.
“Even when that kind of violence is not new for the country, Iguala events raised doubts on the capacity of the government to deal with this critic topic and with the impact that violence could have on the economic perspectives,” it added.
The rating agency also said that even when corruption accusations against President Enrique Peña Nieto may not affect the long-term economic situation in the country, it is a challenge that questions the capacity and leadership of the government.
However S&P said that currently the economic panorama in Mexico is stable, and gave the country a BBB+ rating. The company also noted that Mexico's energy reform, which allows the privatization of oil resources in the country, could improve Mexico's future economic perspectives, though this depends on the correct implementation of the reform.
Acorrding to S&P webpage, a BBB rating means a country has an “adequate capacity to meet financial commitments, but more subject to adverse economic conditions.”
The disappearance of the 43 students in Iguala, as well as the corruption and conflict of interests scandals of Mexico's first lady and finance minister have created unrest in the country's population, causing the approval ratings of president Peña Nieto to fall down to 39 percent.