PEMEX Plans Local Bond Issuance: Moody’s, HR Ratings
PEMEX is preparing a new local debt issuance worth MX$30 billion (US$1.667 billion), according to rating agencies Moody’s Ratings and HR Ratings, as the NOC continues to rely on domestic financing mechanisms to support its operations amid persistent financial pressure and declining production levels.
Moody’s reported that PEMEX plans to place local bonds with proceeds earmarked for general corporate purposes. The agency said that the transaction forms part of PEMEX’s broader short- and medium-term liquidity strategy. HR Ratings provided additional detail, stating that the issuance will be carried out under a revolving program of securities authorized by Mexico’s National Banking and Securities Commission, with a total ceiling of up to MX$100 billion or its equivalent in inflation-linked units and a validity of five years.
According to HR Ratings, the new securities will be unsecured and issued on a senior, unsubordinated basis, without specific guarantees. The bonds will be structured across three maturities of five, eight and ten years, with interest payments every 28 days and on a semiannual basis. The instruments will include variable-rate tranches referenced to the interbank equilibrium interest rate, as well as fixed nominal and fixed real-rate options, offering PEMEX flexibility to tap different segments of the local debt market.
The agencies emphasized that PEMEX’s debt continues to be treated by investors as quasi-sovereign. HR Ratings noted that the company’s liabilities retain a de facto sovereign character due to the ongoing financial backing provided by the Mexican government through capital injections, fiscal support and direct assistance for meeting debt obligations. This implicit support has been a key factor in sustaining market access for PEMEX despite its weak standalone credit profile.
PEMEX remains the world’s most indebted oil company, with financial debt exceeding US$100 billion, in addition to sizable payables owed to suppliers and contractors. The company’s financial strain has been exacerbated by declining crude oil output, which in 2025 fell to its lowest level in more than four decades, according to official data. While the federal government has outlined a multi-year strategy aimed at restoring PEMEX’s financial independence, near-term funding needs continue to be met through a combination of budgetary support and market-based financing.
The planned bond issuance follows a series of measures implemented to stabilize PEMEX’s liquidity, including supplier payment programs supported by development bank Banobras and capital contributions approved as part of the federal budget. Analysts have pointed out that local debt placements allow PEMEX to reduce exposure to foreign exchange risk and avoid immediate pressure from international bond markets, where investor appetite has been more cautious.
However, rating agencies have also warned that additional borrowing does not address PEMEX’s structural challenges. Moody’s has previously highlighted that sustained improvements in production, cost control and refining performance will be necessary to strengthen the company’s credit metrics over the medium term. Without these changes, continued reliance on government support is likely to persist.
