S&P: Pemex Project Funding bonds BBB-

Standard & Poor's said it assigned its BBB- rating to Pemex Project Funding Master Trust's $1.75 billion perpetual bonds.

The proceeds will be used to finance the investment program of its parent company, Petroleos Mexicanos (local currency: A-/stable/--, foreign currency: BBB-/stable/--).

The foreign currency corporate credit rating on Pemex Project Funding Master Trust is BBB-. The outlook is stable.

Pemex established Pemex Project Funding Master Trust as a Delaware trust with Pemex as the sole beneficiary. All debt issued by the Pemex Master Trust benefits from the irrevocable and unconditional guarantee of Pemex and its subsidiary entities, including Pemex Exploración y Producción, Pemex-Refinación, and Pemex-Gas y Petroquímica Básica.

"The ratings on Pemex, the state-owned Mexican oil and gas company, and on the United Mexican States are equalized because of the government's ownership of the company, Pemex's importance to the Mexican 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," said S&P credit analyst Jose Coballasi.

© 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.