Fitch lowers Pemex

Fitch Ratings said it downgraded Pemex (Petroleos Mexicanos SAB de CV)'s long-term foreign- and local-currency issuer default ratings to BBB- from BBB+ and its national long-term ratings to AA(mex) from AAA(mex).

The outlook is negative.

These downgrades apply to about $80 billion of notes outstanding and all national scale long-term issuances, Fitch said.

The agency also affirmed Pemex's short-term ratings and all related nationally rated debt securities at F1+(mex).

The downgrades reflect the continued deterioration of Pemex's standalone credit profile to CCC from the previous assessment of B- as a result of persisting negative free cash flow and material under-investment in the company's upstream business, Fitch said.

The agency said it continues to assess the government's ownership and control of the company as "very strong" and its support track record as "moderate" due to the government's very large extractions of cash from Pemex in recent years.

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