Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Pemex's New York roadshow spooks investors, yields spike

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/11/2019 | 11:05pm EDT
FILE PHOTO: PEMEX sign shows prices at a gas station in Monterrey

MEXICO CITY (Reuters) - Yields on the debt of Mexican state-run oil company Pemex rose sharply this week after the company failed during presentations in New York to lay out a clear plan to reduce debt and increase output, analysts said.

Pemex faces the possibility of a credit ratings downgrade due to costly proposals by the new government of leftist President Andres Manuel Lopez Obrador that include plans to build a new refinery and upgrade existing ones.

Half a dozen investors and analysts who either attended or were briefed on presentations in New York by the company's new chief financial officer, Alberto Velazquez, said they were unconvinced by the plan to turn around Pemex.

Mexican financial assets slumped late last year after Lopez Obrador canceled a partly-built airport project. They have regained ground in recent weeks, in part due to relief about an austere budget announced by his economic team.

Markets are watching closely for signs of how the new president will manage Latin America's second largest economy.

"It was a poor presentation and it is at a time when the market is increasingly sensitive about anything to do with Mexico," Pablo Cisilino, a portfolio manager at Stone Harbor, told capital markets publication Refinitiv IFR.

Pemex did not immediately respond for a request for comment.

The yield on Pemex's 6.5 percent coupon dollar bond due January 2029 spiked on Thursday and Friday, closing 35 basis points higher on Friday compared to Wednesday's close, according to Refinitiv data.

Both Pemex and the government were expected to try soon to issue debt on international markets, and the two-day road show launched on Wednesday by Velazquez and officials from Mexico's finance ministry was a bid to ease worries.

"It backfired," said one New York analyst, who spoke on condition of anonymity.

Petroleos Mexicanos [PEMX.UL], as the firm is formally known, has seen crude output drop for more than a decade as its major fields age and it has struggled to replenish reserves.

Another New York-based economist who attended the presentation agreed it did not go well for Pemex and said that the situation was "worrisome."

"They didn't know how to answer clearly," said the economist, who asked not to be named. "We'll see how they do."

(Additional reporting by Stefanie Eschenbacher, Michael O'Boyle and Adriana Barrera; Writing by Anthony Esposito; Editing by Daniel Wallis)

By Sheky Espejo

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
06:10aBASEL COMMITTEE ON BANKING SUPERVISION : III monitoring results published by the Committee
PU
06:09aBanks shrink capital shortfalls under Basel rules
RE
06:07aToyota, Suzuki charge up partnership for electric cars
RE
06:05aBAYER : World shares face end to winning streak as Fed looms
RE
06:05aBAYER : World shares face end to winning streak as Fed looms
RE
06:03aOpen that door? Netflix explores choose-your-own horror, romance
RE
06:00aECHA EUROPEAN CHEMICAL AGENCY : 20 March 2019 - News release RAC and SEAC agreed conformity of the intentionally added microplastics restriction proposal
PU
06:00aAUSTRALIAN GOVERNMENT : Papua New Guinea joins the Pacific Labour Scheme
PU
05:58aBAYERISCHE MOTOREN WERKE : BMW warns of significant profit fall in 2019, seeks 12 billion euro in cuts
RE
05:58aCK Infrastructure 2018 Net Profit Up Slightly, Below Market Expectations
DJ
Latest news "Economy & Forex"
Advertisement