Miriam Grunstein for Living in Mexico Radio. Will Pemex Bankrupt Mexico?

According to the Economist: Pemex has been the world’s most indebted oil company for several years. Its debt is over $100bn, equivalent to 8% of Mexico’s gdp. While Pemex’s exploration and production arm is profitable, the company is facing losses elsewhere, particularly from its refining operations. In July Fitch, a credit-rating firm, downgraded Pemex. The company’s debt is a risk to the country, too. Moody’s, another ratings agency, mentioned it as a factor in its decision in 2022 to downgrade Mexico’s rating. The recent affair over the $500m means Pemex will need more financial support from the government. For how much longer can the oil giant rely on bail-outs to stay afloat?