Fitch upgrades Pemex's credit rating to 'BB', citing stronger government support
The upgrade to BB, while still below investment grade, reflects the government's efforts to try to stabilize Pemex, the world's most indebted energy company, beset for years by financial and operational challenges.
This week, Mexico placed $12 billion in a debt offering in an effort to ease Pemex's short-term financial pressures and support debt refinancing.
President Claudia Sheinbaum's administration has pledged to boost oil production while maintaining government backing for the state oil firm.
Despite the financial infusion, Pemex still faces operational risks due to declining oil production, underinvestment, and environmental concerns.
Pemex reported this week that its financial debt was $98.8 billion as of June 2025. The recent $12 billion debt offering covered $9.5 billion in debt obligations due in 2025 and 2026.
Mexico's actions "signal stronger government oversight and improved decision-making," Fitch Ratings said, referencing this week's debt offering as well as debt ceiling adjustments that strengthened Pemex's linkage to the sovereign.
Fitch said future upgrades for Pemex could be a result of additional government support, a sovereign rating increase for Mexico, or an "irrevocable guarantee from Mexico's government to sustainably cover more than 75% of Pemex's debt."
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