Mexico’s State-owned oil company is about to be downgraded… Here is Matt Wirz, Wall Street Journal:
”The Mexican state-owned energy company is on the verge of being downgraded to below investment grade by two major ratings firms. Its bonds are showing signs of forced selling by funds with limits on owning junk debt. And the selling is far from over, according to a report Thursday by Citigroup Inc. analyst Eric Ollom.
With about $105 billion of bonds and loans outstanding, Pemex debt is widely held by mutual-fund managers in Europe and the U.S. who took comfort in its hefty oil reserves and an implicit guarantee from the Mexican government. But a 15-year slide in oil production has shaken that confidence and earlier this month Fitch Ratings cut Pemex to a high-yield rating, while Moody’s Investors Service dropped the company to its lowest investment-grade rating.”
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