Pemex Cut to Brink of Junk by Moody's as Mexico Outlook Lowered
- Oil company recorded a $32 billion financial loss last year
- Moody's rates sovereign debt A3, above S&P or Fitch grades
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Petroleos Mexicanos credit rating was cut to the cusp of junk by Moody’s Investors Service, which also warned that the Mexican oil company’s financial problems threaten the government’s creditworthiness.
Moody’s lowered Pemex two levels to Baa3 from Baa1, putting the company’s rating one step above investment grade, as lower oil prices worsen the outlook for its credit outlook. Separately, the New York-based firm reduced the outlook for Mexico to negative from stable amid subdued economic growth and the possibility that the government will need to give financial support to the state oil company.