Market Overview

Fitch Affirms PEMEX Finance Ltd's Ratings at 'A'; Outlook Stable

CHICAGO--(BUSINESS WIRE)--

Fitch Ratings has affirmed the following ratings for the notes issued by Pemex Finance Ltd., a Cayman Islands special purpose company wholly owned by Petroleos Mexicanos S.A. de C.V. (PEMEX):

-- Series 1998 9.15% Notes due 2018 at 'A';
-- Series 1999 10.61% Notes due 2017 at 'A';
-- Series 1999 LIBOR+ 3.50% Notes due 2014 at 'A';
-- Series 1999 LIBOR+ 3.25% Notes due 2014 at 'A'.

The Rating Outlook remains Stable.

The future flow program is backed by the sale of receivables generated by the future sales of Maya crude to designated U.S., Canadian, and Aruban customers.

The rating affirmations reflect the credit quality of PEMEX, the strength and importance of PEMEX's export sales of Maya crude to North America and the structure of the note program, which helps to mitigate certain sovereign risks. The affirmations are further supported by the program's strong performance, reflected in a high quarterly debt-service coverage ratio (DSCR) and robust monthly collections. The quarterly DSCR averaged 193.3x during the last eight reported quarterly periods.

The program continues to de-lever; as of November 2012 the total outstanding balance is approximately $581.7 million, equivalent to 1.02% of PEMEX's total debt. Fitch considers the amount of PEMEX Finance debt outstanding vis-a-vis PEMEX's overall debt burden to be well within acceptable levels for the assigned rating level.

A sovereign report describing the credit rating of Mexico and a full rating report on PEMEX are available on Fitch's website at www.fitchratings.com.

Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Future Flow Securitization Rating Criteria' (June 19, 2012);
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Petroleos Mexicanos (Pemex)' (Oct. 30, 2012);
--'Mexico' (Jan. 12, 2012).

Applicable Criteria and Related Research:
Future Flow Securitization Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681832
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
Petroleos Mexicanos (Pemex)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=693300

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Fitch Ratings
Primary Analyst:
Cristina Madero, +1-312-368-2080
Associate Director
Fitch, Inc.
70 W Madison
Chicago, IL 60602
or
Secondary Analyst:
Cinthya Ortega, +1-312-606-2373
Director
or
Committee Chairperson:
Greg Kabance, +1-312-368-2052
Managing Director
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com

 

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