S&P rates Pemex notes BBB+

S&P said it assigned a BBB+ issue-level rating to Petroleos Mexicanos' (Pemex; foreign currency: BBB+/stable/--; local currency: A/stable/--) £450 million 3¾% senior unsecured notes due 2025.

Proceeds will be used to finance the company’s investment program, working capital needs and debt repayment.

The notes benefit from the guarantees of Pemex Exploracion y Produccion, Pemex Cogeneracion y Servicios, Pemex Perforacion y Servicios, Pemex Logistica and Pemex Transformacion Industrial, which also currently guarantee all of Pemex's outstanding notes.

The foreign currency ratings on the company are the same as the sovereign foreign currency rating on Mexico, based on the assessment of the government's almost certain likelihood of extraordinary support to the company.

S&P said it also assesses Pemex's stand-alone credit profile as bb, reflecting the company's solid position in the global oil market and its average crude production of 1.971 billion barrels per day as of Sept. 30.

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