Fitch rates Pemex issues A-

Fitch Ratings said it assigned a long-term local-currency international rating of A- to Petroleos Mexicanos SA's debt instruments, along with a national long-term rating of AAA(mex).

The issues include an additional certificados bursatiles of the second reopening of the 14th certificados bursatiles issuance with ticker Pemex 13 of up to Ps. 12.5 billion due Feb. 28, 2019 at variable rate; and additional certificados bursatiles of the second reopening of the 15th certificados bursatiles issuance with ticker Pemex 13-2 of up to Ps. 12.5 billion due Sept. 12, 2024 at fixed rate.

Fitch also assigned a national long-term rating of AAA(mex) to Pemex's 16th certificados bursatiles issuance with ticker Pemex 14U of up to Ps. 12.5 billion with a term up to 15 years at fixed rate.

The company also has a long-term issuer default rating of BBB+, local-currency long-term issuer default rating of A-, national long-term rating of AAA(mex), along with a BBB+ rating on its notes outstanding in foreign-currency, A- rating on its notes outstanding in local-currency rating of A- and national scale debt issuances rating of AAA(mex).

The issuances will have a joint guarantee from Pemex-Exploracion y Produccion, Pemex-Refinacion and Pemex-Gas y Petroquimica Basica, in terms of the joint responsibility agreement and the corresponding designated certificados, Fitch said.

The total amount of the three issuances, which will be held in the form of communicating vessels, will not be able to exceed Ps. 12.5 billion at the time of the provisions, the agency said.

The ratings reflect Pemex's close 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 pretax income, export-oriented profile, sizable hydrocarbon reserves and its strong domestic market position, the agency said.

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

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