Pemex will continue under pressure with López Obrador: Fitch

Petróleos Mexicanos (Pemex) will remain under pressure with the winner of the presidential election, Andrés Manuel López Obrador, as has happened in previous administrations, warns Fitch Ratings.

"The individual credit profile of Pemex, currently in the credit risk agency said in a report.

The rating of the state-producing company is aligned with the sovereign. felt that the Mexican government had a strong incentive to support the company in the face of Pemex's financial consequences for the country.

"A financial hardship situation in Pemex leads to a potential interruption of fuel supply in the country. all the countries. the importation of gas, petroleum products and petrochemicals, which could have material, social and economic consequences for Mexico "

In addition, the financial problems of the company would affect the ability of the government or other public entities to find funding The vision of the future administration for its energy platform includes the modernization and / or expansion of Mexican refineries, in addition to re-evaluating the energy reform promoted by the government of Peña Nieto

"While the energy reform was positive for Pemex, the company was ready to receive the most benefits in the very long term, since the taxes of newly allocated blocks are lower. Expanding and / or upgrading the country's refining capacity and controlling or limiting the prices of liquid fuels could accelerate the weakening of Pemex's credit profile, depending on how and if a new administration puts it. implement these policies. 19659002] Read also: The obstacles that will prevent Pemex from going public

Fitch recalled that the oil company has some locks to make abrupt changes.

The Mexican president appoints the 10 members of the board of directors of the company, five of whom are independent and ratified by the country's Senate for staggered periods of five years. Some committees are chaired or composed solely by independent members of the board of directors. The Audit and Human Resources Committees are entirely independent, while the Strategy and Investment Committee and the Acquisitions Committee are chaired by independents.

"This corporate governance structure can provide checks and balances changes in strategy, management and / or investment decisions. The Law of Petróleos Mexicanos that established these corporate governance policies can be changed in Congress with the approval of a simple majority. "