13.1 C
New York
Sunday, March 26, 2023

Mexican president says Pemex will pay debt, vows to boost finances

Mexican president says Pemex will pay debt, vows to boost finances© Reuters. The Pemex logo is pictured during the 80th anniversary of the expropriation of Mexico’s oil industry at the headquarters of state-owned oil giant in Mexico City

By Ana Isabel Martinez

MEXICO CITY (Reuters) – Mexican state oil firm Pemex will make all of its debt payments, President Andres Manuel Lopez Obrador said on Thursday, promising measures to shore up its finances after credit ratings agency Fitch downgraded the firm’s rating last month.

Lopez Obrador, a veteran leftist who took office in December, said that he will present a plan on Friday to strengthen Pemex’s finances. One source of funding will be savings from the government’s fight against fuel theft, he said.

“Pemex will never fail to fulfill an obligation,” Lopez Obrador said in response to a question during his regular morning press conference about whether his government would refinance or restructure Pemex’s debt. “We will pay all of the obligations punctually.”

Rating agency Fitch downgraded Pemex’s credit rating in late January, citing the company’s high leverage and tax burden. Pemex holds roughly $103 billion in financial debt, the highest of any state oil firm in Latin America.

Investors worry that if the company loses investment grade Mexico’s sovereign debt could also be downgraded.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles