Pemex business plan raises doubts about the company's viability: S&P

FILE PHOTO: A sign of state-owned company Petroleos Mexicanos (PEMEX) is seen at a gas station in Monterrey, Mexico June 17, 2019. REUTERS/Daniel Becerril/File Photo

MEXICO CITY (Reuters) - Mexican state oil company Pemex’s newly announced business plan is a risky about-face that raises doubts about the company’s long-term viability, analysts with credit ratings agency S&P Global Ratings wrote in a note on Monday.

Nevertheless, the business plan has no immediate impact on the company’s credit rating, they wrote in the note.

Last week, Mexico unveiled parts of a keenly awaited business plan meant to bring the world’s most indebted oil company back from the abyss, but its vow of $7.2 billion in government support failed to dispel worries of a ratings downgrade.

Reporting by Diego Ore; writing by Julia Love; Editing by David Gregorio