Government Financial Support Continues to Be a Key Element in the Management of Pemex's Liabilities

• S&P Global Ratings reported on July 24, 2025, that the state-owned oil company Petroleos Mexicanos (Pemex; foreign currency BBB/Stable; local currency BBB+/Stable) is expected to receive between $7Bn and $10Bn from Mexico’s pre-capitalised bond issuance due 2030. The expected inflow is to help improve its maturity profile and financing costs with respect to its roughly $100Bn in financial debt (equivalent to 7.0%-10.0% of total) as at the first quarter of 2025.
• S&P views this transaction as part of the ongoing sovereign-level liability management plan to help Pemex improve its debt composition, diversify funding sources, reduce interest expense, and improve liquidity.
• However, although the announced transaction is intended to reduce immediate financial debt pressures, this financial aid does not cover all of Pemex's short-term financial and operating liabilities, including approximately $20.0Bn due to suppliers as at March 31, 2025 (including past due and current amounts).
• That said, S&P continues to expect that the company will face a shortfall of cash sources relative to its cash needs over the next 12 months, and Pemex's capital structure will remain highly leveraged, with expected debt-to-EBITDA well above 5.0x in 2025. The company, therefore, remains dependent on sovereign support.
• Overall, S&P continues to see Pemex as a key asset, playing a central role in the Mexican government's energy policy. The high government involvement in all strategic decisions and its full ownership of the company support its view of the link between Pemex and the government. Further, the 'BBB' foreign currency rating on Pemex reflects expectations of an almost certain likelihood of extraordinary support to the company in a scenario of financial distress, which is confirmed by the current transaction.

(Source: S&P Global Ratings)