Moody's maintains Pemex ratings

Credit ratings agency Moody's will maintain a stable rating outlook for the Baa1 local currency and Baa1 foreign currency ratings of Mexico's state oil company Pemex, Moody's announced Friday. Moody's changed the rating outlook for the Baa2 foreign currency country ceiling rating of Mexico to positive from stable on March 12, but that outlook change and any future rating action affecting Mexico would not merit a change in Pemex's ratings, Moody's said. Pemex's large tax contribution to the Mexican government will continue to constrain free cash flow available to meet its substantial internal capital needs and will keep financial leverage high. Consequently, Moody's does not currently expect any positive change in either Pemex's rating outlook or its Baa1 ratings. Pemex's Baa1 foreign currency debt rating is already rated above Mexico's foreign currency ceiling.