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Moody's warns Mexico violence hurting business

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Mexico, Latin America's second-largest economy after Brazil, is struggling to deal with over a decade-long surge in violent crime fueled by powerful drug cartels.

MEXICO CITY, Mexico - Ratings agency Moody's warned on Tuesday that violent crime was hurting Mexican businesses, saying the crucial oil and tourism industries were particularly vulnerable.

Mexico, Latin America's second-largest economy after Brazil, is struggling to deal with a more than decade-long surge in violent crime fueled by powerful drug cartels. Moody's said in its report that insecurity-related costs also posed risks in the food, retail and mining industries. Standard & Poor's recently downgraded the country's outlook to "negative," along with that of struggling state oil company Pemex. And Fitch downgraded Pemex by two notches in January, triggering investor jitters and a drop in the peso.

 

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