The agency highlights that any change in the relationship with the federal government could affect the rating: “If there is a change in the relationship between Pemex and the Federal Government, which shows that Pemex’s debt is no longer guaranteed by of the Federal Government, the Company’s rating could be modified”.
It is not yet clear if the federal administration will grant more support to the company to pay its debt amortizations: up to now, it has maintained the Shared Utility Right rate -the highest tax paid by Pemex- at 40% and has installed a mechanism to that the state company pay in a deferred way -of one month- its tax burden. So far, no further capital contributions have been announced.
“In the future, both ratings (the sovereign and Pemex) will depend on the evolution and compliance with Mexico’s fiscal targets,” the agency says.