Fitch to rate Pemex note reopening BBB+

Fitch Ratings said it expects to assign a long-term rating of BBB+ to Pemex (Petroleos Mexicanos SA) proposed $5 billion reopening of its 2027 and 2047 senior unsecured notes.

The company expects to use the proceeds to refinance upcoming maturities and to fund capital investments.

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 energy supply to the country.

“A financial distress situation at Pemex holds the potential to disrupt the supply of liquid fuels in the entire country, which could have material social and economic consequences for Mexico, as it is a fundamental input into the production of almost all goods, as well as the mobility of goods and labor,” the agency said in a news release.

“Mexico is a net importer of hydrocarbons, and the company relies on the import of basic oil products, including dry gas, petroleum products and petrochemicals, in order to supply local demand.”

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