In a blow to Mexican President Andres Manuel Lopez Obrador, ratings agency Moody’s Investors Service on Friday became the second main ratings agency to downgrade national oil company Petroleos Mexicanos to speculative grade, or junk, status. The new rating of Ba2 is expected to substantially increase the financing costs for Pemex and Mexico alike, as well as trigger a fire sale among investors whose mandates stipulate they must hold bonds of investment grade quality. Fitch Ratings labeled the bonds junk last year and has downgraded it twice more in April. Ratings agencies have for the past year criticized Lopez Obrador’s nationalist energy agenda, which includes building an expensive refinery and cutting private companies from participation in the energy sector. S&P Global Ratings, which uses a different scale and pegs Pemex ratings to the sovereign, in March cut the ratings of both Mexico and Pemex to BBB, keeping both in investment grade.