Seeking Alpha
Profile|
( followers)  

The risk of Mexico, measured through the Emerging Market Bond Index of J.P. Morgan closed at 309 points on Friday, 51 points below March last year.

In comparison, the risk of Argentina and Brazil reduced by 94 and 30 points during last week and closed at 833 and 384 points respectively, according to information released by the Ministry of Finance and Public Credit (SHCP).

Ixe Financial Group stated that the announcement from the International Monetary Fund to establish a credit line to Mexico on the amount of US$47 billion had a positive effect on the country risk.

Historically, the lowest level indicator of Mexico's country risk ever reached was at 71 points (June 1, 2007) and the highest level was at 684 points (October 24, 2008).

As a matter of fact the country risk indicator's intention is to disclose the possibility of breaching the terms of external debt. Thus, the more the indicator increases, the more likely an emerging nation is to default on its financial obligations.

Source: Mexico's Risk Decreased on Announcement of IMF Credit Line