Fitch Affirms PEMEX Finance Ltd. at ‘A+’; Outlook Stable

Fitch Ratings affirms the ratings assigned to the outstanding series
issued by PEMEX Finance Ltd. as follows:

--Series 1998 9.15% notes due 2018 at 'A+'; Outlook Stable;

--Series 1999 10.61% notes due 2017 at 'A+; Outlook Stable.

PEMEX Finance Ltd. is a Cayman Islands special purpose company wholly
owned by Petroleos Mexicanos S.A. de C.V. (Pemex). The future flow
program is backed by receivables generated by the sale of Maya crude to
designated U.S., Canadian and Aruban customers.

KEY RATING DRIVERS

Credit Quality of Pemex: On May 7, 2015, Fitch affirmed Pemex's foreign
currency (FC) and local currency (LC) Issuer Default Ratings (IDRs) at
'BBB+' and 'A-', respectively. The Rating Outlook is Stable. While
performance risk related to the originator and the securitized business
line does not constrain the current rating of the transaction, Fitch
tempers the notching uplift of future flow ratings for highly rated
originators.

Small Size of Future Flow Program: The outstanding balance of the
program is $275 million, which represents less than 1% of PEMEX's total
liabilities. The longstanding program is scheduled to fully amortize in
November 2018.

High Albeit Reduced DSCRs: The future flow program continues to benefit
from high debt service coverage ratios (averaging 76.8x in 2015) despite
a collapse in Maya crude oil prices and a reduction in production levels.

Sovereign Stability: On July 31, 2015, Fitch affirmed Mexico's Long-term
FC and LC IDRs at 'BBB+' and 'A-', respectively, and the Country Ceiling
at 'A'. The Outlook is Stable.

RATING SENSITIVITIES

The ratings assigned to the notes are sensitive to changes in the credit
quality of Pemex as well as to sustained severe reductions in program
collections.

DUE DILIGENCE USAGE

No third-party due diligence was provided to or reviewed by Fitch in
relation to this rating action.

Additional information is available at www.fitchratings.com.

Sources of Information:

In addition to the source(s) of information identified in the master
criteria, this action was additionally informed by information from
Pemex.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14
May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Future Flow Securitization Rating Criteria (pub. 12 Aug 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868191

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=997043

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=997043

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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View source version on businesswire.com: http://www.businesswire.com/news/home/20151218005631/en/

Source: Business Wire
(December 18, 2015 - 11:02 AM EST)

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