Moody's lowers Pemex view to negative

Moody's Investors Service said it changed Petroleos Mexicanos' (Pemex) outlook to negative from stable.

Moody's also said it affirmed the company's global foreign-currency and local-currency ratings, as well as ratings based on Pemex's guarantee at Baa3.

The agency also said it lowered Pemex's baseline credit assessment, which reflects its standalone credit strength, to Caa1 from B3.

These actions follow the recent change to Mexico's outlook to negative from stable, Moody's said.

The downgrade of the baseline rating reflects expectations of ongoing negative free cash flow at Pemex and declining proved reserves, despite efforts to cut costs and boost capital spending, the agency said.

The outlook revision coincides with the change in Mexico's outlook, given the importance of the sovereign's credit strength and ongoing support to Pemex, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.