* Mexico’s state-owned oil company Pemex has reported annual losses of M$148.63bn (US$7.7bn) in 2018, 47% less than that reported in 2017. Total income was M$1.68trn – up from M$1.39trn in 2017. Last month international credit ratings agency Fitch downgraded Pemex’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to ‘BBB-’ from ‘BBB+’ and its National Long-Term ratings to ‘AA(mex)’ from ‘AAA(mex)’, with its rating outlook 'negative'. According to a Fitch statement, these downgrades apply to approximately US$80bn of notes outstanding and all national scale long-term issuances. The statement underlines that “
the ratings are constrained by Pemex’s substantial tax burden, high leverage, significant unfunded pension liabilities, large capital investment requirements, negative equity and exposure to political interference risk”.
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