Fitch rates Pemex notes BBB

Fitch Ratings said it assigned a BBB rating to Petroleos Mexicanos' £350 million 8¼% senior unsecured notes due 2022.

Proceeds will be used for infrastructure projects.

Ratings reflect the company's 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 agency said.

Ratings also reflect Pemex's significant debt levels, sizable but declining proven hydrocarbon reserves, weak net worth position, substantial tax burden, large capital investment requirements and exposure to political interference risk, the agency noted.

As of March 31, the company's debt-to-EBITDA ratio was 0.7 times, up from 0.6x during 2008.

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