Fitch downgraded Pemex to BB+ from BBB- – Reuters

With the US-Mexican relations are on fire, global rating agencies are signaling alarms over the Mexican economy and companies.

After the country’s credit rating downgrade, Reuters reported that the Fitch recently downgraded the Mexican state-owned petroleum company’s, Pemex, credit status from BBB- to BB+.

The global rating agency said that rating action on Pemex follows Wednesday's downgrade of Mexico's sovereign foreign and local currency long-term IDRs to 'BBB' from BBB+.

It also said that Pemex continues to severely underinvest in its upstream business, which could lead to further production and reserves decline.

The news report also quotes Fitch as saying that its top-rated Mexican corporates ratings unaffected by Mexico's sovereign rating downgrade.