Pemex Bonds Tumble on Fitch Downgrade to Junk

The video discusses the challenges faced by Pemex, Mexico's state-owned oil company, following a credit downgrade by Fitch. Investors fear further downgrades by SNP or Moody's, which could lead to Pemex being excluded from key indexes. Pemex is struggling with operational inefficiencies, producing at only 35% capacity, and faces significant debt obligations. The Mexican government has pledged support, but the extent of this aid is uncertain amid increasing trade tensions with the US.

What was the impact of Fitch's downgrade on Pemex's credit rating?

• It resulted in Pemex being upgraded.

• It improved Pemex's credit rating.

• It had no effect on Pemex's credit rating.

• It pushed Pemex into junk territory.

What could happen if Pemex is downgraded again by SNP or Moody's?

• Pemex could be included in more indexes.

• Pemex could be kicked out of some key indexes.

• Pemex's debt would be forgiven.

• Pemex would receive more government support.

What percentage of capacity are Pemex's refineries currently operating at?

• 50%

• 75%

• 35%

• 100%

How much debt does Pemex need to roll over by the end of the year?

• $1.6 billion

• $500 million

• $3 billion

• $5 billion

What external factor is contributing to Pemex's challenges?

• Decreasing oil prices globally

• Increasing trade tensions with the US

• A surplus of oil production

• A new competitor in the market