Fitch Ratings Inc. has again downgraded the credit rating of Mexican state oil company Petróleos Mexicanos (Pemex), citing liquidity and environmental, social and governance (ESG) concerns.


Pemex’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) already were in junk territory at ‘BB-,’ and now have been lowered to ‘B+,’ the Fitch team said Friday (July 14).

Pemex is Mexico’s largest natural gas producer, accounting for about 95% of domestic output.

“The downgrades reflect Pemex’s continued weak operating performance, which has resulted in Fitch lowering several of the company’s ESG Relevance Scores to ‘5’ and is expected to further limit its sources of financing from banks, investors, and suppliers,” Fitch analysts said. “The...