After a rating cut from Moody’s Rating Agency, the head of PEMEX, Octavio Romero Oropeza, called the move shameful and lacked any ethics.
PEMEX also stated it had not received any supporting Technical analysis from Moody’s Rating Agency to justify the rating Cut.
The director of Pemex said that the decision by the rating agency was based on the fact that Pemex would not have sufficient income to acquire the Deer Park refinery in Harris County, Texas, and still continue with the construction of the Dos Bocas refinery and pay the debt. According to Pemex, the money to acquire full ownership of the Deer Park refinery would come from Mexicos Government and not from Pemex.
“It seems to us that it’s an action taken by the credit rating agency that lacks professionalism, ethics — in short, it’s something shameful,”Octavio Romero Oropeza
Octavio Romero Oropeza, director general de Petróleos Mexicanos (Pemex), dijo no estar de acuerdo con la baja calificación que dio la agencia Moody’s Investors Service a la empresa estatal y señaló que ésta es resultado de “contradicciones metodológicas evidentes“. pic.twitter.com/WeviT4SH7E— Edgar Mendez Elizondo (@EdgarMendezE) July 29, 2021
Moody’s no entregó soporte de análisis técnico ni de proyecciones,Pemex
American Politicians don’t agree with Mexico’s goal of Energy independence.
U.S Politicians have been critical of Mexico’s move to become energy independent, as it would make Mexico less reliant on American Refineries, thereby the U.S corporations would be losing money that would otherwise head north into the U.S coffers.
Texas Senator Ted Cruz said Mexico’s recent decision to tap Pemex to run a major oil find shows “what appears to be a systematic campaign by the Mexican government to undermine American companies, especially energy companies.”
Mexicos energy independence plan has been attacked by U.S Politicians and now from Rating Agencys.
Rating agencies assign credit risk ratings to large-scale borrowers. Anything below BBB- is considered junk bond status. Governments and large corporations are keen to avoid being assigned such a rating for fear of interest rates becoming burdensome by pushing up the cost of credit.
The credit rating market is dominated by just three agencies Moodys, Standard & Poor’s, and Fitch Ratings, all of which are American agencies.
No word yet if the decision to cut PEMEX’s rating was made in part because of political pressure from Washington.
In July 2021, Pemex with the support of the Federal Government is reducing its long-term debt, the second consecutive year of oil production growth is achieved, the cost of oil extraction was reduced by 20%, it increased by Crude oil processing in refineries was reduced by almost 90%, fuel theft was reduced by almost 90%, a Margin / Ebitda of 36% was obtained and the Federal Government reduced the DUC rate to 54% and has granted additional tax incentives.PEMEX