LatinNews Regional Monitor: Mexico - 22 October 2018

* International credit ratings agency, Fitch Ratings, has revised its Rating Outlook on Mexico’s state-owned oil firm Pemex’s international Issuer Default Rating (IDRs) to 'negativ'e from 'stable'. According to Fitch’s official statement, this revision is a consequence of the uncertainty about Pemex’s future business strategy, which could potentially contribute to the weakening of the company’s capital structure. Fitch reports that the negative rating outlook also reflects Pemex’s deteriorating Standalone Credit Profile (SCP), which could reach ‘CCC’ from its current ‘B-’. According to Fitch, Pemex’s SCP’s ongoing deterioration is a result of the high number of fund transfers from the company to the Mexican government, which is leading to rising debt.

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