S&P gives Pemex notes BBB+

S&P said it assigned its BBB+ issue-level rating to Petroleos Mexicanos' (Pemex) $2.5 billion, 5.95% senior unsecured notes due 2031, and $2.5 billion, 6.95% senior unsecured notes due 2060.

The transaction is part of Pemex's liability management plan, and it won't increase the company's net debt. Pemex will use proceeds to refinance short-term debt maturities. The notes are guaranteed by Pemex Exploracion y Produccion, Pemex Transformacion Industrial and Pemex Logística, all of which also currently guarantee all of Pemex's outstanding notes.

“Pemex also launched a debt exchange offer to improve its debt maturity profile. If successful, we would consider the exchange to be an opportunistic refinancing, rather than a distressed restructuring, because the company doesn't depend on such transaction to mitigate liquidity or insolvency risks, and we wouldn't expect bondholders to receive less value than the promise of the original securities,” said S&P in a press release.

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