This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Petroleos Mexicanos (PEMEX) and its senior unsecured bonds were downgraded by two notches from B1 to B3 by Moody’s. The downgrade reflects PEMEX’s weak liquidity and negative free cash flows amid expanding capital requirements combined with significant upcoming maturities over the next 2-3 years. As of 30 September 2023, PEMEX had $4bn in cash compared to $10.9bn in debt maturities in 2024. In addition, the downgrade also incorporates Moody’s revised assumption of reduced government support due to PEMEX’s expanding cash needs and deterioration in projected fiscal conditions of government in 2024. Moody’s has a negative outlook on the entity, expecting PEMEX’s cash flow generation and credit metrics to deteriorate further over the next three years.
PEMEX’s dollar bonds dropped by 0.2-1 point across the curve with its 4.25% 2025s trading at 97.7 cents on the dollar, yielding 6.9%