S&P: Pemex unchanged after add-on

Standard & Poor’s said the A global scale and mxAAA national scale ratings on Petroleos Mexicanos’ (Pemex) existing notes Pemex 13-2, Pemx 13 and Pemex 14U are unchanged after a Ps.15 billion add-on.

The proceeds will be used for capital expenditures and debt refinancing, S&P said.

The notes benefit from an irrevocable and unconditional payment guarantee from subsidiaries Pemex Exploracion y Produccion, Pemex-Refinacion and Pemex-Gas y Petroquimica Basica, the agency said.

The ratings are based on Pemex’s credit quality and an expectation of an almost certain likelihood of extraordinary government support due to the company’s critical role as dominant oil exploration and production company operating in Mexico, S&P said.

It has an integral link with the government, given the government’s full and stable ownership of the company, the agency said.

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