Fitch raises Pemex rating
Fitch Ratings raised Pemex’s long-term debt rating from ‘BB’ to ‘BB+’, citing a stable outlook.
The agency ascribed the upgrade to the oil company’s $9.9 billion tender offer on eight series of securities, which was supported with government funding.
«The transaction indicates a stronger link between Pemex and the sovereign (the government), which translates into an increase in the company’s Oversight, Linkage, and Support (OLS) assessment,» it claimed in a statement following its decision on Thursday.
With the decision, Fitch now rates Pemex at one notch below Mexico’s sovereign rating, rather than two notches below, resulting in an upgrade.
Fitch said that Mexico has passed legislation allowing Pemex to share the debt ceiling with the Treasury, and that these revisions aim to considerably reduce the company’s leverage and financing costs.
