Fitch Affirms PEMEX Finance Ltd. at 'A+'; Outlook Stable
Fitch Ratings affirms the ratings assigned to the outstanding series
issued by PEMEX Finance Ltd. as follows:
--Series 1998 9.15% notes due 2018 at 'A+'; Outlook Stable;
--Series 1999 10.61% notes due 2017 at 'A+; Outlook Stable.
PEMEX Finance Ltd. is a Cayman Islands special purpose company wholly
owned by Petroleos Mexicanos S.A. de C.V. (Pemex). The future flow
program is backed by receivables generated by the sale of Maya crude to
designated U.S., Canadian and Aruban customers.
KEY RATING DRIVERS
Credit Quality of Pemex: On May 7, 2015, Fitch affirmed Pemex's foreign
currency (FC) and local currency (LC) Issuer Default Ratings (IDRs) at
'BBB+' and 'A-', respectively. The Rating Outlook is Stable. While
performance risk related to the originator and the securitized business
line does not constrain the current rating of the transaction, Fitch
tempers the notching uplift of future flow ratings for highly rated
Small Size of Future Flow Program: The outstanding balance of the
program is $275 million, which represents less than 1% of PEMEX's total
liabilities. The longstanding program is scheduled to fully amortize in
High Albeit Reduced DSCRs: The future flow program continues to benefit
from high debt service coverage ratios (averaging 76.8x in 2015) despite
a collapse in Maya crude oil prices and a reduction in production levels.
Sovereign Stability: On July 31, 2015, Fitch affirmed Mexico's Long-term
FC and LC IDRs at 'BBB+' and 'A-', respectively, and the Country Ceiling
at 'A'. The Outlook is Stable.
The ratings assigned to the notes are sensitive to changes in the credit
quality of Pemex as well as to sustained severe reductions in program
DUE DILIGENCE USAGE
No third-party due diligence was provided to or reviewed by Fitch in
relation to this rating action.
Additional information is available at www.fitchratings.com.
Sources of Information:
In addition to the source(s) of information identified in the master
criteria, this action was additionally informed by information from
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14
Future Flow Securitization Rating Criteria (pub. 12 Aug 2015)
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
Dodd-Frank Rating Information Disclosure Form
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CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
View source version on businesswire.com: http://www.businesswire.com/news/home/20151218005631/en/
Copyright Business Wire 2015
Source: Business Wire
(December 18, 2015 - 11:02 AM EST)
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