S&P: Pemex notes unchanged

Standard & Poor's said the BBB senior unsecured debt rating on Petroleos Mexicanos (Pemex)'s $2 billion of 5.5% senior unsecured notes due 2021 remains unchanged, following the company's $1 billion add-on.

Through this reopening, Pemex increased the notes' outstanding amount to $3 billion.

These bonds benefit from its subsidiaries' irrevocable and unconditional guarantee of payment, S&P said.

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

The ratings also consider 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, S&P said.

The company's significant financial risk profile and its unfavorable reserve-replacement rate offset the positive factors, the agency said.

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