Fitch rates Pemex notes BBB+

Fitch Ratings said it assigned an expected long-term international rating of BBB+ to Petroleos Mexicanos SA's (Pemex) €1.4 billion proposed notes issuance due 2026.

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

The proceeds will be used to finance capital investments and refinancing needs and for general corporate purposes.

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

The ratings also consider the company's solid pre-tax 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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