Moody’s Affirms Pemex Ratings After Cutting Mexico Sovereign Rating

Moody’s Ratings on Friday affirmed the ‘ca’ standalone credit strength of Petroleos Mexicanos, as Pemex is officially known, as well as the B1 Corporate Family Rating. The outlook remains stable. The rating agency said it expects continued strong government support for the heavily indebted state oil producer.

It also noted that further deterioration in Mexico’s sovereign rating, liquidity, or production performance could still trigger future downgrades.

Pemex has recorded declining production, negative free cash flow, and weak refining operations. The firm has not delivered profits even as oil prices rose above $100 in recent months. Moody’s warned that Pemex remains heavily reliant on government backing.