CHICAGO–(BUSINESS WIRE)–Petroleos Mexicanos (Pemex) faces insolvency as a result of heavy taxes,
an insufficient support package, and the long-term effects of capex
reduction, according to a new Fitch Ratings sensitivity analysis.
“The Mexican government’s continued demand for dividends from Petroleos
Mexicanos (Pemex) in the form of taxes will force the company to borrow
at a unsustainable pace, said Lucas Aristizabal, Senior Director.
“Essentially, Pemex borrows 100% to pay taxes versus the government
borrowing directly from investors to fund its deficit, at lower cost.”
“Pemex’s taxes ensure it will likely transfer all of its EBITDA…
Read the full article at: http://www.businesswire.com/news/home/20161021005536/en/Fitch-High-Tax-Burden-Pushes-Pemex-Insolvency
