S&P lifts Pemex outlook to positive

Standard & Poor's said it revised the outlook on Petroleos Mexicanos (Pemex, LC: BBB) and on the Pemex Project Funding Master Trust (FC: BBB) to positive from stable.

All of the ratings on Pemex have been affirmed, the agency said, noting that the rating action follows its revision of the outlook on the United Mexican States to positive from stable.

The stable outlook on the local currency rating reflects S&P's expectations that it will not be raised during the medium term.

According to the agency, the ratings on Pemex and those on the United Mexican States (FC: BBB/positive/A-3, LC: A/positive/A-1) are linked because of the government's ownership of the company, Pemex's importance to Mexico's economy, the government's heavy dependence on oil-related revenue and the considerable government oversight of the company, particularly with respect to all fiscal aspects of management.

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