Mexico Financial Authorities Warn of Additional Pemex Downgrade as Pandemic Rages On

Additional credit rating downgrades of Mexican national oil company Petróleos Mexicanos (Pemex) and of the sovereign are among the biggest internal risks facing the country’s economy as it struggles to emerge from a still-raging coronavirus pandemic and economic downturn, according to local authorities.

In its latest summary of risks facing the economy issued Tuesday, Mexico’s Consejo de Estabilidad del Sistema Financiero (CESF), or financial system stability council, warned of a rocky road ahead for Mexico and the world as Covid-19 cases continue to surge and/or resurge, depending on the country.

Board members of Mexico’s central bank Banxico also warned at an August meeting of  potential Pemex and sovereign downgrades, citing a survey conducted by an investment bank...