S&P gives Pemex notes BBB+

S&P said it assigned its BBB+ issue-level ratings to Petroleos Mexicanos' (Pemex) $2 billion 6½% senior notes due 2029.

The company will use the proceeds to fund part of its investment plans and working capital needs, as well as to refinance existing debt.

The notes benefit from the guarantees of Pemex Exploración y Producción, Pemex Transformación Industrial, Pemex Perforación y Servicios and Pemex Logística.

The agency said the foreign currency ratings on Pemex are the same as the sovereign foreign currency rating on Mexico, based on an 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 at bb-, reflecting a view that the debt-to-EBITDA ratio will improve below 5x by the end of 2018 and trend towards 4.5x in the intermediate term.

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