Mexican Finance Minister Carlos Urzua said on April 13 he does not expect rating agencies to further downgrade the credit rating of state-owned energy company Pemex.
With $106 billion in financial debt, Pemex is the world's most indebted oil company and is teetering on the brink of having its debt downgraded to below investment grade.
"We don't believe Pemex's credit rating will be downgraded," Urzua said in a press conference at the IMF and World Bank spring meetings in Washington.
Urzua said that if he was a foreign investor, "I'd be buying Pemex debt because Pemex likely won't have to go out (to the debt market) this year," which he said would make the existing bonds appreciate in value.
Earlier this year credit rating agency Fitch cut Pemex's rating by two notches to BBB-, the lowest investment grade rating, and assigned a negative outlook. A further downgrade to 'junk' territory would likely force some of the debt holders to sell.
Saudi Aramco, the world's biggest oil producer, made core earnings of $224 billion last year, almost three times as much as Apple.
The parties must now renegotiate a deal that would transfer Breitburn's Permian reserves to investors including Elliott and WL Ross through their participation in a $775 million rights offering.
A debtor-in-possession financing combined with Vanguard's cash from operations is expected to give the Houston-based company sufficient liquidity during the Chapter 11 process.