On Friday, the 28th of June 2019, Mexican far-right wing president Andres Manuel Lopez Obrador said that a new syndicated loan of about $8 billion for Mexico’s grief-sickened state-controlled oil firm, Pemex, sanctioned by more than 20 regional lender had been a sign of confidence for the national oil company, which had recently witnessed a credit downgrade from global rating agencies likes of Fitch’s and Moody’s.
In fact, Friday’s consoling comments of Mexican president came forth after a day Pemex had renewed its credit lines deals and refinance liabilities. At a regular news conference later on Friday (June 28th), voicing optimism about the Mexico’s national oil firm, which analysts had stomached as hollow as it had been before, Obrador said, “These actions demonstrate that there is confidence.
The banks don’t act without information, they don’t take a decision like this because they like the government. They know that Pemex is in very good health. Everybody is questioning, and betting that the economy will go badly, but when these actions happen it helps a lot because it demonstrates confidence”.
Pemex, drowned under $106 billion in debts, and facing a possible junk status ahead which would likely to hit the company alongside Mexican sovereign bonds, had announced on last February that the debt-saddled oil firm had been working on financial operations.
In fact, earlier this month, rating agency Fitch had downgraded Pemex’s $80 billion in bonds to speculative grades or ‘junk’ territory from a prior investment grade alongside a negative outlook ahead.