© Reuters. FILE PHOTO: Signage of Petroleos Mexicanos (Pemex) is pictured on the firm’s headquarters in Mexico Metropolis, Mexico July 26, 2023. REUTERS/Raquel Cunha
MEXICO CITY (Reuters) – Scores company Moody’s (NYSE:) on Friday downgraded its ranking for Mexico’s state-owned oil agency Pemex by two notches to B3 from B1 beforehand, citing poorer credit score high quality.
Moody’s, which has a adverse outlook for the agency, stated it assumed the corporate was receiving excessive authorities assist, and that this assist may very well be jeopardized by a 2024 deterioration of Mexico’s fiscal situations.
Pemex is among the many world’s most indebted oil firms, with monetary liabilities exceeding $100 billion.
The company stated it anticipated a significantly greater fiscal deficit in Mexico on the again of excessive borrowing prices, social spending and emblematic authorities tasks.
Moody’s stated it expects prices for additional supporting Pemex to have elevated by the point Mexico’s subsequent administration comes into energy in October.
The downgrade comes the identical day Mexico’s authorities ordered the expropriation of a hydrogen plant at a Pemex refinery that had been offered to France’s Air Liquide (OTC:) underneath the earlier administration.