MEXICO CITY, July 24 (Reuters) - The rating outlook for Latin American packaged food producers is expected to remain stable in the year's second half, but making a profit will be challenging, Fitch Ratings said on Monday.

While the industry can "cope with a weaker than projected economic growth with rising borrowing costs and fragile investor sentiment," profitability will suffer from economic slowdowns, tighter financing conditions and persistent cost pressures, Fitch said in a report.

Companies such as Mexican breadmaker Grupo Bimbo , Argentina's Arcor and Brazilian meatpacker BRF face constrained consumer purchasing power, high inflation, elevated credit costs and lower investment due to policy uncertainty, Fitch noted.

"We expect a moderate revenue growth for the packaged food sector, mainly driven by constrained consumer spending and prolonged inflation that limits sector capacity to pass through costs," Fitch said.

The sector's capacity to converge with constant crises, economic downturns and instabilities in the region will remain a challenge, the ratings agency added.

Despite the risks, Fitch noted that liquidity is expected to be manageable in the second half, as companies have refinanced debt and "do not face material amortizations in the next 12 months."

"Fitch believes the sector will have sufficient financial flexibility and access to bank loans or capital markets to refinance short-term maturities ahead of time," it added. (Reporting by Carolina Pulice; Editing by Richard Chang)