Mexico peso extends gains despite Fitch downgrade

MEXICO CITY Nov 23 (Reuters) - Mexico's peso firmed sharply on Monday after Fitch Ratings cut its sovereign credit rating on the country by one notch.

The peso MXN=MEX01 gained 0.6 percent to 12.995, breaking the key psychological level of 13 per dollar. A downgrade for Mexico was expected and has been mostly been priced into the market.

Fitch put Mexico on a stable outlook, easing worries of a further downgrade by the agency. (Reporting by Michael O'Boyle) ((michael.oboyle@thomsonreuters.com; Tel: +5255-5282-7153; Reuters Messaging: michael.oboyle.reuters.com@reuters.net))