Moody’s lifts Pemex, notes to A3

Moody's Investors Service said it upgraded Petroleos Mexicanos (Pemex) global foreign currency and global local currency ratings to A3 from Baa1.

At the same time, Moody's de Mexico SA de CV upgraded certain notes issued by Pemex to A3 from Baa1.

The outlook is stable.

This action completes the review started on Feb. 6, triggered by the Feb. 5 upgrade of the government of Mexico's bond rating to A3 from Baa1.

"The upgrade of Pemex's ratings to A3 is based on Moody's view that despite the significant changes arising from energy reform, Pemex will remain closely linked to the government of Mexico, which will continue to provide strong support, given the company's importance to the government's budget, to the oil sector and to the country's exports," Moody’s vice president and senior credit officer Nymia Almeida said in a news release.

"In the short- to medium-term, we do not expect any material reduction in Pemex's tax burden and its debt amount is likely to rise to fund higher capex. However, its managerial and budgetary autonomy will increase, improving its efficiency."

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