S&P upgrades Mexico

Standard & Poor's said it raised the long-term local-currency rating on Mexico to A from A- and the long-term foreign-currency rating to BBB+ from BBB.

The agency also said it raised the short-term local-currency rating to A-1 from A-2 and affirmed the short-term foreign-currency rating at A-2.

The outlook is stable.

S&P also said it raised the T&C assessment to A+ from A.

The Mexican Congress and state legislatures just passed a constitutional amendment to open the energy sector to private investment, the agency said. This is a watershed moment for Mexico, S&P said.

Tapping into Mexico's vast oil potential should energize investment and growth throughout the economy, but the agency also said it believes the tangible effects on economic activity won't be recognized for a number of years.

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