CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed the ratings assigned to all outstanding series issued by Pemex Finance Ltd. at 'A' and PF Export Receivables Master Trust (Petrobras) at 'BBB+'. The Rating Outlook remains Stable.
PEMEX Finance Ltd. is a Cayman Islands special purpose company wholly owned by Petroleos Mexicanos (PEMEX). The program is backed by the sale of receivables generated by the future sales of Maya crude to designated U.S., Canadian and Aruban customers. The rating affirmation reflects PEMEX's ability to produce and export crude oil at current levels; the strong legal structure that guarantees that oil export payments will be made offshore and the difficulty for Mexico in diverting cash flows away from investors; the very low likelihood that the sovereign would impose material or permanent restrictions on crude oil exports; and the high debt service coverage ratio (DSCR); averaged 79.23 times [x] during 2010) that should offer protection to investors declines in both price and production.
PF Export Receivables Master Trust (Petrobras) is a securitization of heavy fuel oil (HFO) exports from Petroleo Brasileiro S.A. (Petrobras) to customers who have signed Notice & Consent (N&C) agreements. Risks associated with the transaction are influenced by Petrobras' performance and credit quality, which in turn is linked to the sovereign ratings due to government participation in the company. In addition, Petrobras has a diverse client base and the ability to sell to multiple parties that may not be specified buyers. This ability to potentially divert from the structure links the ratings assigned to the outstanding series of notes issued by PF Export Receivables Master Trust directly to the local currency long-term Issuer Default Rating (IDR) of Petrobras, which was affirmed at 'BBB+' in December 2010. Petrobras has been careful to respect the transaction's triggers and coverage levels. Furthermore, there remains a group of third-party buyers which have signed notice and acknowledgements, and the transaction directly benefits from these collections. DSCRs have averaged 5.05x during 2010.
Fitch has taken the following rating actions:
Pemex Finance Ltd.
--Series 1998 9.15% notes due 2018 affirmed at 'A', Outlook Stable;
--Series 1999 10.16% notes due 2017 affirmed at 'A', Outlook Stable;
--Series 1999 LIBOR+ 3.50% notes due 2014 affirmed at 'A', Outlook Stable;
--Series 1999 LIBOR+ 3.25% notes due 2014 affirmed at 'A'; Outlook Stable.
PF Export Receivables Master Trust (Petrobras)
--Series 2003-A affirmed at 'BBB+'; Outlook Stable;
--Series 2003-B affirmed at 'BBB+'; Outlook Stable.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Future Flow Securitization Rating Criteria' (March 3, 2010);
--'Global Structured Finance Rating Criteria' (Aug. 13, 2010);
--'Petroleos Mexicanos (Pemex)' (June 14, 2010);
--'Petroleo Brasileiro S.A. (Petrobras)' (Aug. 10, 2009).
Applicable Criteria and Related Research:
Future Flow Securitization Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=502672
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326
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