S&P lowers Pemex view to negative

S&P said it revised the global scale rating outlook on Pemex (Petroleos Mexicanos SAB de CV) to negative from stable.

The outlook follows a similar revision to the outlook on Mexico.

S&P also it affirmed the global scale BBB+ foreign-currency and A- local-currency ratings and national scale mxAAA/mxA-1+ issuer credit ratings.

The outlook remains stable.

The agency also said it affirmed the BBB+ foreign-currency and A- local-currency issuer credit ratings on Pemex's subsidiaries.

S&P also said it revised the stand-alone credit profile on Pemex to B- from BB- due to a persistent deterioration of the company's business and financial risk profiles that has compromised the recovery of its upstream and downstream activities.

The government's financial support also falls short of the company's multi-annual capital investment needs, the agency added.

The negative outlook mirrors that on the sovereign and reflects a view that the close relationship between the company and the sovereign will remain unchanged over the next couple of years.

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