Fitch rates Pemex notes A-/AAA(mex)

Fitch Ratings said it assigned a long-term local currency international rating of A- and a national long-term rating of AAA(mex) to Petroleos Mexicanos' (Pemex) certificados bursatiles with the tickers Pemex 15 and Pemex 15U.

The agency also assigned a long-term local currency international rating of A- to the third and previous reopening of the certificados bursatiles issuance with ticker Pemex 14-2.

The company expects to use the proceeds to finance capital investments and refinancing needs as well as for general corporate purposes.

Fitch said the ratings reflect Pemex's close linkage to the government of Mexico and the company's fiscal importance to the sovereign. The ratings also reflect the company's solid pretax income, national and export-oriented profile, sizable hydrocarbon reserves and its strong domestic market position.

The ratings are constrained by Pemex's significant unfunded pension liabilities, substantial tax burden, large capital investment requirements, negative equity and exposure to political interference risk, the agency said.

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