Fitch ends watch on Pemex

Fitch Ratings said it affirmed Petroleos Mexicanos' (Pemex) long-term foreign and local currency issuer default ratings at B+, removed the ratings from rating watch negative and assigned a stable outlook.

The end of the RWN reflects the Mexican government’s commitment to inject $8.5 billion of capital into the company. For the first time, the government included funds to help the company. Pemex has $10.9 billion of debt due in 2024.

“Fitch believes the inclusion of Pemex in the annual budget will make further support easier. The presidential election in 2024 provides some uncertainty regarding what support will be provided for Pemex in 2025 and thereafter. Over the rating horizon, Fitch estimates Pemex will need to address a $30 billion cash shortfall between 2024 and 2027, averaging $7 billion per annum, in addition to $20 billion in maturities between 2025 and 2027,” the agency said in a press release.

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