Implications of Mexico's Judicial Reform on Economic Stability

Moody's Ratings warns that Mexico's new judicial reform, passed by the Senate, may negatively impact the country's sovereign credit rating. The reform mandates the election of judges by popular vote, potentially weakening checks and balances and jeopardizing Mexico's economic and fiscal stability.

Mexico's sweeping judicial overhaul, passed in the Senate earlier on Wednesday, could have significant implications for the nation's sovereign credit rating, Moody's Ratings warned in a report.

The reform, which stipulates that judges be elected by popular vote, will erode checks and balances and could undermine Mexico's economic and fiscal strength, Moody's cautioned.

(With inputs from agencies.)