Mexico and Pemex credit ratings cut by Moody's and Fitch

  • Moody's downgraded its credit rating on Mexico to Baa1, and joined Fitch Ratings with a cut to the Mexican state-owned oil company Pemex's rating as well, with both companies on Friday citing weak economic growth prospects and sharp drops in the price of oil.
  • Moody's cut Pemex to junk status, lowering the rating to Ba2 from an investment grade Baa3. Meanwhile, Fitch cut the company further into junk status, dropping the rating to BB- from BB.
  • Moody's maintained negative outlooks on both the sovereign and Pemex. It said Mexico's medium term economic growth prospects have materially weakened and that the "continued deterioration in Pemex's financial and operational standing is eroding the sovereign's fiscal strength, which is already pressured by slower revenue growth due to a weaker economy."

(Source: Latin Finance)