Fitch affirms Pemex

Fitch Ratings said it affirmed the foreign currency rating of Petroleos Mexicanos at BBB- and the local currency rating at BBB. The outlook is stable.

Fitch said Pemex's ratings are supported by a strong pretax financial profile, sizable proven hydrocarbon reserves, an export-oriented profile, an attractive upstream cost structure, its fiscal importance to the sovereign and a dominant domestic market position.

These strengths are tempered by vulnerability to fluctuations in international commodity prices, its substantial tax burden, imminent negative net worth position, large capital investment requirements and exposure to political interference risk, according to Fitch.

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