It was a black Friday for Pemex: Moody’s downgraded it to “junk bond” levels
MEXICO. (Agencies) – Moody’s downgraded Petróleos Mexicanos (Pemex) to speculative grade, hours after Fitch lowered its credit rating for the second time this month.
The evaluation of the productive state company fell two steps, from “Baa3” to “Ba2” with a negative perspective.
At the same time, it downgraded the sovereign rating of Mexico because of a weak economic growth of the country and the financial and operational deterioration of Pemex to fiscal strength of the country, in addition to a weakness in the legal framework and institutional capacity.
Moody’s also lowered the benchmark credit score (BCA), reflecting its credit profile to caa2 from caa1. “These actions were triggered by the company’s high business risk and liquidity,” Moody’s said.
Speculative grade is the formal term for financial debt considered “junk bond”.
As of June 2019, Fitch Ratings placed Pemex’s credit note in speculative grade. Since then, it has downgraded its rating twice during April 2020.
