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Moody's Warning Rebuffed as Pemex's Mexico Backing Here to Stay

  • Pemex outperforms Latin America oil producers in bond market
  • The company still funds about 30 percent of Mexico's budget
Updated on

Moody’s Investors Service is warning Mexico may not be able to provide its struggling state-oil company with the financial support it’ll need as soon as next year. 

To Standard Life Investments Ltd. and Actinver Casa de Bolsa SA, there’s little chance the government turns its back on Petroleos Mexicanos. While Mexico -- which ended Pemex’s monopoly as part of sweeping reforms in 2013 -- faces declining revenue as its economy sputters, the government continues to have a vested interest in ensuring the oil producer succeeds. Pemex will still fund about 30 percent of Mexico’s budget, according to official estimates.