Fitch rates Pemex notes BBB-

Fitch Ratings said it assigned a foreign currency rating of BBB- to the $750 million floating-rate notes due 2012 issued by Pemex Project Funding Master Trust and unconditionally guaranteed by Mexico's state-owned Petroleos Mexicanos.

The outlook is stable.

Proceeds will be used to finance and refinance long-term productive infrastructure projects.

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 Mexico and a dominant domestic market position, the agency said.

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.

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