Petroleos Mexicanos would be near default without the Mexican government’s support, Moody’s Investors Service said, downgrading the state oil company’s debt further into junk territory.

The credit rating company lowered Pemex’s corporate debt to B3 from B1 and maintained its negative outlook, according to a statement Friday. Another measure that considers government dependence, which Moody’s calls the Baseline Credit Assessment, was cut to ca from caa3, indicating the company would be highly likely to default without backing from the state.