Fitch recalled that Congress has already approved legal changes that allow the oil company to share the indebtedness ceiling with the Ministry of Finance, a step that reflects greater state control and supervision on the financial policy of the company.
The rating increase depends on the repurchase of debt is completed successfully and with public resources, as well as the continuity of the government support in the coming years. Fitch explained that a broad and sustainable guarantee of the State to cover more than 75% of the debt can also promote a positive change.
Although Pemex’s individual credit profile is still in “CCC”, due to its high levels of debt, limited liquidity and stagnant production, the repurchase operation opens a window. At the end of June, the oil company reported 98,800 million dollars in debt and an interest expense that exceeds half of its quarterly Ebitda.
With the direct support of the government and greater institutional linkage, Fitch considers that Pemex abandons the qualification stagnation and achieves its first advance in years.
