S&P rates Pemex notes BBB

S&P said it assigned its BBB issue-level rating to Petroleos Mexicanos' upcoming sale of $1 billion of senior unsecured bonds due 2032. The notes benefit from guarantees from Pemex Exploracion y Produccion, Pemex Transformacion Industrial, and Pemex Logistica, all of which also currently guarantee Pemex's outstanding notes.

Pemex is expected to use the proceeds for the recently announced debt refinancing plan that includes exchange and tender offers for several outstanding senior unsecured notes. The new bonds will amortize in three equal installments in each of the last three years before, and including, the maturity date.

“We don't expect the new issuance to increase Pemex's net debt,” S&P said in a press release.

The outlook is negative.

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