'Unsustainable': Mexico's Pemex Buckling Under Crushing Pension Debt

Straining under a massive debt load and at risk of a ratings downgrade, Mexican state oil company Petroleos Mexicanos (Pemex) was hit with a record jump in its pension liabilities last year as more workers retired on generous benefits, the International New York Times reported on a Reuters story. Pemex is fighting to avoid having its bonds cut to "junk" or speculative grade, which would put pressure on Mexico's sovereign rating and deal a heavy blow to populist President Andres Manuel Lopez Obrador, who has vowed to revive it. Unfunded pension liabilities at Pemex rose 34.8% last year to almost 1.5 trillion pesos ($77.3 billion), the company's accounts show. It also has $105.2 billion in financial debt. "No company in the world, whether private or public, can sustain these," said Jorge Sanchez, director at financial think tank FUNDEF. Read more