* International credit ratings agency Fitch has maintained the Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) of Mexico’s state-run oil company Pemex at B+ and removed Pemex’s IDR ratings from Rating Watch Negative (RWN) with a ‘stable’ outlook. Fitch said that Pemex’s removal from RWN reflects the commitment to inject US$8.5bn of capital into the company, after the inclusion and approval of Pemex in the federal budget, which it said covers most of its US$10.9bn of debt maturities in 2024. Fitch said that this resolved Fitch’s short-term concerns regarding the government’s ability and willingness to materially support Pemex – a concern raised when Fitch downgraded Pemex in July to BB- . Fitch said it “believes the inclusion of Pemex in the annual budget will make further support easier”. However, it notes that the 2024 presidential election “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 US$30bn cash shortfall between 2024 and 2027, averaging US$7.0bn per annum, in addition to US$20bn in maturities between 2025 and 2027”.
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LatinNews Daily - 21 December 2023
In brief: Fitch removes Mexico’s Pemex from Rating Watch Negative
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