* Moody’s Investor Service, the international credit ratings agency, has released a new note warning against the recently announced proposals by Mexico’s President-elect Andrés Manuel López Obrador that his government will seek to stop all oil exports. Moody’s warns that this will have a negative impact on Mexico’s state-owned oil firm, Pemex. According to the note, Pemex’s “cash flow would decline and become more volatile under the new refining-focused business model” proposed by López Obrador. “Pemex would be exposed to greater foreign exchange volatility, since its income from fuel sales would be in Mexican pesos, while 87% of its US$104bn debt as of June 2018 is in US dollars or other hard currencies…The new plan could also force Pemex to import crude, which would add to its cash-flow and foreign-exchange risk”, the note adds.
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