MEXICO CITY, Sept 11 (Askume) – Moody’s Ratings warned in a report that sweeping judicial reforms passed by Mexico’s Senate on Wednesday could have a significant impact on the country’s sovereign credit rating.
Moody’s warned that the reform, which would provide for judges to be elected by popular vote, would weaken checks and balances and could undermine Mexico’s economic and financial strength.
Outgoing President Andrés Manuel López Obrador, who has often clashed with top judges, has repeatedly argued that reforms are needed to restore the integrity of Mexico’s judiciary and ensure it serves the interests of the people, not elites and criminals.
However, trade partners such as the United States and Canada have expressed concerns about the measure.
Moody’s said the reform faces risks posed by challenges from both countries, particularly under the trilateral USMCA trade agreement.
Another reform proposed by López Obrador would eliminate some independent regulators, making the country’s already well-positioned infrastructure sector less attractive to private investment, the credit agency said.
Moody’s said legal uncertainty could hit sectors most dependent on concessions and large-scale investment, such as mining and telecoms.
