Ratings agency Moody’s on Friday downgraded Mexico’s credit rating due to a deteriorating economic outlook and cut the debt of state oil firm Pemex to junk status, dealing a serious blow to President Andres Manuel Lopez Obrador.
Moody’s Investor Service said it had cut Mexico’s creditworthiness to “Baa1” from “A3”, and lowered the rating of the heavily indebted, loss-making Pemex to “Ba2” from “Baa3”.
Though Mexico retains an investment-grade rating, Pemex’s drop to junk is expected to ramp up financing costs for the firm formally known as Petroleos . . .
