S&P affirms Pemex

Standard & Poor's said it affirmed its local and foreign currency corporate credit ratings on Petroleos Mexicanos (Pemex, LC: A-/stable, FC: BBB/stable).

The ratings assigned to the Pemex Project Funding Master Trust (FC: BBB/stable) and RepConLux SA (FC: BBB/stable) were also affirmed, the agency said.

The outlook is stable.

S&P said the ratings on Pemex and those on the United Mexican States (LC: A/stable/A-1, FC: BBB/stable/A-3) are linked because of the government's ownership of the company, Pemex's importance to the Mexican economy, the government's heavy dependence on oil-related revenue and the considerable government oversight of the company, particularly with respect to all fiscal aspects of management.

The ratings also reflect significant support attributed by its sole owner and Mexico's large oil & gas reserve base, Pemex's monopoly status in most aspects of the large Mexican oil and gas market and its central role in the Mexican energy sector, the agency added.

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