S&P: Pemex unchanged after add-on

Standard & Poor’s said the A global scale local-currency and mxAAA national scale ratings on Petroleos Mexicanos’ (Pemex) existing Ps.25.3 billion Pemex14-2 fixed-rate notes due November 2026 are unchanged after a Ps.25 billion add-on.

The mxAAA national scale ratings on Ps.9.3 billion Pemex 14 variable-rate notes due November 2020 and Ps.15.2 billion Pemex 14U fixed-rate notes due January 2026 also are unchanged.

The company originally issued the notes under its Ps. 200 billion long-term notes program.

The proceeds will be used for capital expenditures.

The notes benefit from an irrevocable and unconditional payment guarantee from Pemex’s subsidiaries – Pemex Exploracion y Produccion, Pemex Cogeneracion y Servicios Pemex-Refinacion and Pemex-Gas y Petroquimica Basica, S&P said.

The ratings reflect an expectation of an almost certain likelihood of extraordinary government support based on its critical role as dominant oil exploration and production company operating in Mexico, the agency said.

The company provides about 40% of Mexico’s public-sector revenues through taxes and duties, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.