S&P rates Pemex notes BBB

Standard & Poor's said it assigned a BBB rating to Petroleos Mexicanos' (Pemex) $1.75 billion 5.5% senior unsecured notes due 2044.

These notes benefit from Pemex Exploracion y Produccion, Pemex-Refinacion and Pemex-Gas y Petroquimica Basica's irrevocable and unconditional guarantee of payment.

These three entities are Pemex's subsidiaries.

The ratings reflect an opinion that there is an almost certain likelihood that the company will receive extraordinary government support, if necessary, S&P said.

The ratings also consider its critical role as the only exploration and production company operating in Mexico, the agency said.

The government determines Pemex's strategy and key budgetary decisions, S&P said, and maintains tight control over it.

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