Petroleos Mexicanos lost its highest credit rating ever as Moody’s Investor Service downgraded the state oil producer one level, citing a deteriorating credit profile because of lower crude prices, high taxes and falling production. The cut leaves Mexico City-based Pemex at Baa1, the third lowest investment grade and one level below Mexico’s sovereign rating of A3. Moody’s outlook for the company is negative. The rating takes into account the Mexican government’s support for its national oil company, according to a statement announcing the downgrade. Tuesday’s downgrade follows Pemex’s worst-ever quarterly result on Oct. 28, when it announced a net loss of $10.2 billion. The company, which is headed for an 11th consecutive annual drop in production this year, said total debt surged to a record $87.3 billion. “Moody’s believes that Pemex’s credit metrics will deteriorate further in the short to medium term,” Nymia Almeida, a credit analyst at Moody’s, […]