Moody’s cuts Pemex Finance notes to Baa3

Moody's Investors Service said it downgraded the global foreign currency rating of the notes issued by Pemex Finance Ltd. to Baa3 (sf) from Baa1 (sf).

This follows the March 31 action that downgraded the foreign currency and global local currency debt ratings of Petroleos Mexicanos (Pemex) to Baa3 from Baa1.

This concludes the review Moody's initiated on Jan. 22, when it placed the ratings under review for downgrade.

Pemex, the Mexican state-owned oil company, originates the future receivables backing the transaction. The rating on the notes thus depends on Pemex’s ability to continue generating receivables to pay down the notes. As a result, the rating on the Pemex Finance notes is capped by the global local currency senior unsecured rating on Pemex, as the originator of the future receivables.

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