Moody’s downgrades Pemex’s credit risk assessment

Agency Moody This Friday the basic credit risk assessment (BCA) of the state-owned company Petroleos Mexicanos (Pemex) to Ca from Caa3 due to higher liquidity needs, higher cost of capital and high debt maturities it will face in the next 2-3 years.

“The company will face higher business risks as we continue to expand our refining capacity and strive to increase production,” Moody’s said in a statement.

Moody’s admits 2024 budget government includes about $8.5 billion to pay debt service,” he said.

Moody’s concluded by saying that the negative outlook on Pemex’s B3 ratings “primarily reflects the expectation that unless structural reform is carried out According to Pemex’s business strategy, credit performance and cash flow generation will further deteriorate over the next three years, increasing the need for support.” (EFE)

Source: Aristegui Noticias