AMLO's Pemex Gamble Gets Serious Warning From Fitch, Moody's
- Fitch cuts Mexico credit rating while Moody’s lowers outlook
- Mexican president shrugs off warnings by ratings firms
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President Andres Manuel Lopez Obrador’s plan to rescue Mexico’s heavily-indebted oil company suffered a decisive blow when two ratings firms warned he’s only hurting the country’s finances.
In almost simultaneous announcements late Wednesday, Fitch Ratings cut Mexico’s credit rating to BBB from BBB+, while Moody’s Investors Service shifted the outlook on its A3 rating to negative. Both warned that Pemex’s ballooning debt, which makes the state-owned company the world’s most indebted oil producer, is a risk to public finances amid weaker growth.