S&P rates Pemex notes BBB

Standard & Poor's said that it assigned a BBB rating to $1.25 billion of 6.5% senior notes due 2041 issued by Petroleos Mexicanos SAB de CV (Pemex; A local-currency/stable/BBB foreign-currency).

These bonds benefit from an irrevocable and unconditional guarantee of payment by Pemex's subsidiary entities.

The ratings on Pemex reflect the opinion that the Mexican government would almost certainly provide timely and sufficient extraordinary support to Pemex in the event of financial distress, the agency said.

The ratings consider Pemex's critical role as the only exploration and production company operating in Mexico, its provision of close to 40% of Mexico's public-sector revenue through taxes and dividends and its integral link with the government, the agency added.

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