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Fitch Confirms Pemex’s Credit Quality and Improves its Prospects from Negative to Stable


The rating agency Fitch confirmed the credit risk and debt rating of Petróleos Mexicanos from BBB+ in both local and foreign currency and modified its prospects from negative to stable. The above is in line with the change in Mexico’s prospects from negative to stable for the rating of the sovereign debt.

This is the second improvement in the company’s credit prospect within less than a month, after the rating agency Standard and Poor’s did the same this past July 19.

A better credit rating prospect generates a greater certainty in the compliance with financial commitments of the company, as well as a greater confidence in both current and potential projects that involve a partner.

This action is one of the results of the company’s commitment and efforts to strengthen its financial structure:

I. The establishment of its 2017-2021 Business Plan, which adheres to financial discipline, the application of a wide-ranging austerity program and the channeling of investments to more profitable projects.

II. The materialization of the Energy Reform through joint ventures and partnerships for the exploration, production and refining of crude oil.

III. The strengthening of the company’s debt profile, with a greater diversification of sources and longer terms.

Additionally, Fitch informed that the Mexican economy has shown resistance when faced with the lower international oil prices, pointing out the decrease of probable risks before the renegotiation of the NAFTA agreement, and additionally, the government has shown the capability to cope with these challenges. Mexico continues to progress with the fiscal consolidation and Fitch anticipates that this, along with the recent revaluation of the Mexican peso, will generate a renewed tendency towards the lowering of the load on the public debt.

Las menciones de Pemex pueden referirse a Petróleos Mexicanos o a cualquiera de sus Empresas Productivas Subsidiarias.

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