Fitch rates Pemex notes BBB

Fitch Ratings said it assigned a BBB rating to Petroleos Mexicanos SAB de CV's (Pemex) $1.75 billion 5½% proposed notes issuance due June 27, 2044.

The notes are guaranteed by Pemex-Exploracion y Produccion, Pemex-Refinacion and Pemex-Gas y Petroquimica Basica.

The proceeds from the notes are expected to be used for capital expenditures and refinancing needs.

The ratings reflect its linkage to the government of Mexico and the company's fiscal importance to the sovereign, Fitch said.

The ratings also reflect the company's solid pre-tax income, export-oriented profile, sizable hydrocarbon reserves and its domestic market position, the agency said.

The ratings are tempered by Pemex's significant adjusted debt levels, historical negative net worth position, substantial tax burden, large capital investment requirements and exposure to political interference risk, Fitch said.

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