Pemex takes brunt of Mexico’s dual downgrade

Mexico, flag, storm, turbulence, LatAm
By Oliver West
06 Jun 2019

Spreads on dollar bonds issued by Mexican state-owned oil company Pemex ballooned by up to 50bp on Thursday as a sovereign downgrade led the company to lose one of its investment grade ratings and threatened a second.

Wednesday had ended badly for Mexico, with Fitch cutting the sovereign rating from BBB+ to BBB just three minutes after Moody’s had placed its A3 rating on negative outlook. Within an hour, US president Donald Trump had tweeted that trade talks between the US and Mexico were not ...

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