Mexico’s state oil producer Pemex is on the brink of making history as the global bond market’s largest “fallen angel” ever, but in the eyes of the fixed-income world, the debt-laden company has already lost its wings. Earlier this month, Fitch Ratings downgraded Pemex’s roughly $80 billion of bonds to speculative grade – or “junk” status. A second downgrade seen coming soon from Moody’s Investors Service would formally confirm Pemex as a junk credit or fallen angel as bond issuers stripped of their investment-grade ratings are known. Pemex bonds are already trading like junk, however, having been pummeled since the Fitch downgrade. “It is trading more like a low BB or high B sovereign,” Pemex bondholder Tim Jagger, head of emerging […]