S&P downgrades Pemex

Standard & Poor's said it lowered the long-term local-currency corporate credit rating on Petroleos Mexicanos (Pemex) to A- from A, along with the local-currency ratings on its subsidiaries PMI Trading, PMI Norteamerica and MGI Supply to A- from A.

The agency also said it affirmed the BBB long-term foreign-currency credit rating on Pemex and its subsidiaries.

The outlook is stable.

The mxAAA/mxA-1+ national scale ratings remain unchanged.

The downgrade follows the downgrade of the local-currency sovereign credit ratings on Mexico to A- from A following the implementation of S&P's revised methodology and assumptions for sovereign ratings, the agency said.

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.

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