Fitch Upgrades PEMEX Finance Ltd.'s Ratings to 'A+'

Fitch Ratings has upgraded the following ratings for notes issued by Pemex Finance Ltd., a Cayman Islands special purpose company wholly owned by Petroleos Mexicanos S.A. de C.V. (PEMEX):

-- Series 1998 9.15% notes due 2018 to 'A+' from 'A';

-- Series 1999 LIBOR+ 3.25% notes due 2014 to 'A+' from 'A';

-- Series 1999 10.61% notes due 2017 to 'A+' from 'A';

-- Series 1999 LIBOR+ 3.50% notes due 2014 to 'A+' from 'A'.

The Rating Outlook remains Stable.

The future flow program is backed by the sale of receivables generated by the future sales of Maya crude to designated U.S., Canadian and Aruban customers.

KEY RATING DRIVERS

The rating upgrade reflects (i) Fitch's upgrade of PEMEX's Issuer Default Ratings (IDRs); (ii) the structure of the note program and importance of PEMEX's exports of Maya crude to North America, both of which help mitigate certain sovereign risks; (iii) the program's continued strong performance, reflected in high quarterly debt-service coverage ratios (DSCRs) and robust monthly collections; and (iv) the small size of the future flow program relative to PEMEX's total liabilities.

Fitch upgraded PEMEX's foreign currency (FC) and local currency (LC) IDRS to 'BBB+' from 'BBB' and 'A-' from 'BBB+', respectively, following upgrades to Mexico's sovereign ratings. Pemex's ratings reflect its close linkage to the Mexican government and its fiscal importance to the sovereign.

Fitch monitored the performance of the future flow program subsequent to the upgrade of PEMEX's IDRs. Collections continue to be strong, supporting an average quarterly DSCR of 169.5x in 2013. Quarterly DSCR calculations consider quarterly collections and maximum quarterly debt service.

The program continues to de-lever; as of November 2013 the total outstanding balance is approximately $490.8 million, less than 1% of PEMEX's total debt. Fitch considers the amount of future flow debt vis-a-vis PEMEX's overall debt burden to be well within acceptable levels for the assigned rating level.

RATING SENSITIVITIES

The ratings assigned to the notes are sensitive to changes in the credit quality of PEMEX as well as to drastic reductions in the production and/or prices of Maya crude that could negatively impact the performance of the program.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Future Flow Securitization Rating Criteria' (June 18, 2013);

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'Mexico' (May 14, 2013);

--'Petroleos Mexicanos (Pemex)' (Oct. 30, 2012).

Applicable Criteria and Related Research:

Petroleos Mexicanos (Pemex)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=693300

Mexico

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708139

Future Flow Securitization Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=711077

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=814352

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