Fitch issues warning on Mexican power P3s as LatAm continues momentum

Latin America’s power pipelines look stable but Mexico P3s could be in for a rocky road, says rating agency Fitch.

“Deteriorating public finances might trigger or exacerbate delays of grantor payments,” the agency has warned.

The warning comes amid a stable, neutral outlook for the region, with Brazil, Chile, Peru and Colombia’s new administrations all signaling a continued push for green transition projects, which promises to be a strong sector for foreign direct investment.

Elsewhere in Latin American, Fitch said there is a “strong pipeline” of availability based projects in Brazil, singling out the transmission sector for 2023.