S&P rates Pemex bonds BBB

Standard & Poor's said it assigned a BBB foreign-currency, senior unsecured debt rating to Petroleos Mexicanos' (Pemex) $750 million 6.625% perpetual bonds.

These bonds benefit from the irrevocable and unconditional guarantee of payment by Pemex's subsidiary entities, Pemex Exploración y Producción, Pemex-Refinación and Pemex-Gas y Petroquímica Básica.

The ratings reflect an opinion that there is an 'almost certain' likelihood that the Mexican government would provide timely and sufficient extraordinary support to Pemex in the event of financial distress, S&P said.

The foreign-currency credit rating on Pemex is two notches above the company's stand-alone credit rating, the agency said.

The ratings also reflect Mexico's large oil-and-gas reserve base, Pemex's monopoly status in the country's large oil and gas market and its central role in Mexico's energy sector, S&P said.

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