Fitch to assigns BBB+ to Pemex debt

Fitch Ratings said it expects to assign a BBB+(exp) long-term rating to Pemex (Petroleos Mexicanos)'s $5.5 billion senior unsecured debt issuance composed of $1.5 billion notes due 2022, $1 billion floating-rate notes due 2022 and $3 billion notes due 2027.

The company expects to use the proceeds to finance its capital investments, pay upcoming maturities and for general corporate purposes.

The debt issuances are guaranteed by Pemex Exploracion y Produccion; Pemex Cogeneracion y Servicios; Pemex Perforacion y Servicios; Pemex Logistica; Pemex Transformacion Industrial and their respective successors.

Fitch said the ratings reflect Pemex’s close linkage to the government of Mexico and the company's fiscal importance to the sovereign and strategic importance to the country.

The ratings also reflect the company's competitive pre-tax cost structure, national and export-oriented profile, sizable hydrocarbon reserves and its strong domestic market position, the agency added.

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