Fitch rates Pemex bonds BBB+

Fitch Ratings said it assigned a rating of BBB+ to Petroleos Mexicanos’s (Pemex) $1 billion bond issuance due 2025.

Fitch also said it assigned a rating of BBB+ to Pemex’s $1.5 billion reopening of its 2044 bonds.

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 refinance bonds due 2015, Fitch said.

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

The ratings also consider the company’s solid pretax income, export-oriented profile, sizable hydrocarbon reserves and strong domestic market position, Fitch 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, the agency said.

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