S&P rates Pemex notes BBB+

Standard & Poor's said it assigned a BBB+ long-term foreign-currency senior unsecured debt rating to Pemex Project Funding Master Trust's $1 billion 5¾% notes due 2018 and $500 million 6 5/8% notes due 2038, which benefits from Petroleos Mexicanos' (BBB+/stable) and its subsidiary entities' irrevocable and unconditional guarantee.

Ratings on Pemex reflect the United Mexican States' (BBB+/stable/A-2) significant support, Mexico's large oil and gas reserve base, Pemex's monopoly status in the large Mexican oil and gas market, and its central role in Mexico's energy sector, according to the agency.

The local-currency rating reflects a highly leveraged financial profile and unfavorable reserve replacement compared with other investment-grade oil companies, S&P said.

Pemex has a total debt-to-EBITDA ratio of 1.7 times.

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