Rating agency Standard and Poor’s (S&P) confirmed the global rating of Petróleos Mexicanos at ‘BBB+’ with stable outlook after its annual review of the company, and modified its individual credit profile from ‘bb’ to ‘bb-‘.
Additionally, the global rating and stable outlook reflect not only the implicit support of Pemex from the Federal Government regarding adverse financial scenarios, but also an improvement in the company’s financial position, such as adequate liquidity as its cash flow sources are 1.2 times higher than its forecast expenditures for the next 12 months. The ratings agency also underscored that Pemex has started various initiatives to improve its financial balance, which could, in its opinion, gradually improve the company’s profitability and reduce its requirements for financing in the future.
The analysis additionally includes qualitative factors, such as a strong relationship with banks, excellent presence in capital markets and, overall, prudent risk management.
On the other hand, the amendment of the company’s individual credit profile follows production forecasts and is caused by the natural decline of the platform and the restoration of reserves recorded in 2017. According to the ratings agency, the downward production trend is caused by delays in the company’s new projects and the uncertainty associated with the implementation of farm-outs and partnerships.
Petróleos Mexicanos confirms its commitment to transparency towards the financial markets and the general public.