Pemex Cut Can't Shake Investor Faith in `Daddy's' Support
- Moody's lowered its rating on Mexico's Pemex to Baa1 Tuesday
- Downgrade follows worst-ever quarterly results for oil giant
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Petroleos Mexicanos had its credit rating cut following the worst quarterly loss in the company’s history and bondholders shrugged.
The day after Moody’s Investors Service downgraded the company’s rating by one level, citing lower crude prices, high taxes and falling production, the yield spread that investors demand to buy the most-traded bonds due 2020 instead of U.S. Treasuries increased by just 0.01 percentage point to 2.32 percent. State-owned Pemex is the second-largest borrower in Bloomberg’s USD Investment-Grade Emerging-Markets Corporate debt index.