Fitch raises Pemex’s credit rating from 'BB' to 'BB+' citing a stronger government's support

Fitch Ratings upgraded Petroleos Mexicanos (Pemex), the Mexican state energy company, to a 'BB' credit rating from a 'B+,' on Tuesday. The agency removed its positive watch and cited strengthened government support in releasing a press release.

Why it's important

The government has been trying to stabilize Pemex for many years, despite the fact that it is still below investment grade. Pemex is the most indebted company in the world.

CONTEXT

Mexico has placed $12 billion into a debt offering to help ease Pemex’s short-term pressures on finances and refinance debt.

The administration of President Claudia Sheinbaum has committed to increasing oil production and maintaining the government's support for the state oil company.

Pemex faces operational risks despite the financial infusion due to declining production of oil, underinvestment and environmental concerns.

By the Numbers

Pemex announced this week that it had a financial debt of $98.8 Billion as of June 2025. The $12 billion debt offering was to cover $9.5 billion of debt due in 2025 or 2026.

KEY QUOTE

Fitch Ratings stated that Mexico's actions "signal better government oversight and improved decisions," referring to this week's bond offering, as well as the debt ceiling adjustments which strengthened Pemex’s linkage with the sovereign.

What's Next?

Fitch stated that future upgrades for Pemex may be the result of increased government support, an increase in Mexico's sovereign rating, or a "irrevocable promise from Mexico's Government to sustainably cover over 75% of Pemex’s debt." (Reporting and editing by David Gregorio; Brendan O'Boyle)

(source: Reuters)