Victor Hugo Barragan saw sales plummet 40 percent in the first nine months of 2010 at his homemade-ice-cream shop in Guadalupe, Mexico . A grenade blast that injured 14 people in the town’s central square in October - - the first drug-trafficking attack on the general public ever in this Monterrey suburb -- made a bad year even worse.
Mexico’s credit rating may be cut as soon as the third quarter as the global recession exposes the government’s failure to raise taxes and ease its dependence on oil income, according to Credit Suisse Group AG and UBS AG.
Mexican President Felipe Calderon must create new sources of revenue to offset declining oil income if the country is to avoid a downgrade of its debt rating, Standard & Poor’s analyst Lisa Schineller said.
Mexican President Enrique Pena Nieto proposed taxes on capital gains, sugary drinks and the nation’s highest earners in a bid to wean the government of Latin America’s second-largest economy off its dependence on oil revenue.