Fitch downgrades Pemex

Fitch Ratings said it downgraded Petroleos Mexicanos' (Pemex) long-term foreign- and local-currency issuer default ratings to BB+ from BBB-.

The outlook is negative.

The downgrades apply to about $80 billion of notes outstanding.

This downgrades follows the recent downgrade of Mexico's sovereign ratings and outlook revision to stable from negative, Fitch explained.

The downgrades also reflect a combination of the increased risk to the sovereign's public finances from Pemex's deteriorating credit profile, together with ongoing weakness in the macroeconomic outlook, the agency said.

This is exacerbated by external threats from trade tensions, some domestic policy uncertainty and ongoing fiscal constraints, Fitch 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.