Fitch rates Pemex notes BBB-

Fitch Ratings said it assigned a BBB- foreign currency rating to the new notes issued by the Pemex Project Funding Master Trust and unconditionally guaranteed by Mexico's state-owned Petroleos Mexicanos ("Pemex"). The rating applies to the $750 million 5¾% notes due 2015 and $750 million 6 5/8% notes due 2035.

The outlook is stable.

Proceeds will be used to finance and refinance long-term productive infrastructure project.

Fitch said the rating on Pemex reflects its solid pretax financial and export-oriented operating profile, an attractive upstream cost structure, its fiscal importance to the sovereign and its dominant domestic market position.

The rating also reflects Pemex's significant debt levels, sizable but declining proven hydrocarbon reserves, substantial tax burden, low net worth position, large capital investment requirements and exposure to political interference risk, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.