Pemex Bonds Sink With Peso as Fitch Puts Oil Giant Close to Junk

  • AMLO’s tax breaks didn’t save Pemex from another downgrade
  • Investors were counting on more support from the government
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Petroleos Mexicanos bonds cratered after Fitch Ratings downgraded the state-owned company to just a notch above junk, spurring a slide in sovereign debt and the peso.

The yield on Pemex bonds due in 2027 rose 28 basis points to 7.251 percent at 1:02 p.m. in New York, after jumping as much as 40 basis points earlier in the day. Its five-year credit default swaps climbed 24 basis points to 319.