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Moody’s Investors Service downgraded Mexican state oil company Pemex’s Corporate Family Rating to B3 from B1 and maintained the negative outlook, according to a statement.
Moody’s also downgraded Pemex’s Baseline Credit Assessment (BCA) to ca from caa3, the backed senior unsecured ratings on the company’s existing notes and the backed senior unsecured ratings of Pemex Project Funding Master Trust to B3 from B1. The service maintained its negative outlook for the latter entity as well.
“The downgrade to B3 incorporates PEMEX’s weakening stand-alone credit quality and reflects Moody’s revised assumption of government support to High from Very High,” Moody’s said.
Moody’s said the move reflects its assumption of a probable shift in the government’s willingness to support the full service of Pemex’s debt in the next few years due to the company’s expanding cash needs and expected further deterioration in the Mexico’s fiscal conditions in 2024.
Moody’s also downgraded Pemex’s Baseline Credit Assessment (BCA) to ca from caa3, the backed senior unsecured ratings on the company’s existing notes and the backed senior unsecured ratings of Pemex Project Funding Master Trust to B3 from B1. The service maintained its negative outlook for the latter entity as well.
“The downgrade to B3 incorporates PEMEX’s weakening stand-alone credit quality and reflects Moody’s revised assumption of government support to High from Very High,” Moody’s said.
Moody’s said the move reflects its assumption of a probable shift in the government’s willingness to support the full service of Pemex’s debt in the next few years due to the company’s expanding cash needs and expected further deterioration in the Mexico’s fiscal conditions in 2024.