Fitch rates Pemex notes BBB+

Fitch Ratings said it assigned a BBB+ long-term rating to Petroleos Mexicanos SAB de CV’s (Pemex) CHF 600 million senior unsecured debt issuance.

The proceeds will be used to finance the company’s capital investments.

The debt issuances are guaranteed by Pemex Exploracion y Produccion; Pemex Cogeneracion y Servicios; Pemex Perforacion y Servicios; Pemex Logistica; Pemex Transformacion Industrial and their respective successors, 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, national and export-oriented profile, sizable hydrocarbon reserves and strong domestic market position, Fitch said.

The ratings are constrained by Pemex’s significant unfunded pension liabilities, substantial tax burden, large capital investment requirements, negative equity and exposure to political interference, the agency said.

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