Senior Credit Analyst - Emerging Markets, EM Spreads

Leandro Gubler

EM Spreads is an independent credit research service specializing in Emerging Markets, primarily focusing on Latin American issuers.

Senior Credit Analyst - Emerging Markets

PEMEX 3Q24: Government Support Continues to Strengthen

EM Spreads

Credit

<ul>
<li>We are initiating coverage on PEMEX with an Outperform recommendation.</li>
<li>We think the potential reclassification to a public company will lead to an improved credit profile, resulting in spread compression due to the increased linkage with the sovereign.</li>
<li>We prefer the PEMEX (B3/BBB/B+) 5.950% 2031, PEMEX 6.625% 2038, and PEMEX 7.690% 2050 bonds, as they are trading wide to the overall PEMEX curve.</li>
</ul>


We are initiating coverage on PEMEX with an Outperform recommendation.
We think the potential reclassification to a public company will lead to an improved credit profile, resulting in spread compression due to the increased linkage with the sovereign.
We prefer the PEMEX (B3/BBB/B+) 5.950% 2031, PEMEX 6.625% 2038, and PEMEX 7.690% 2050 bonds, as they are trading wide to the overall PEMEX curve.


Initiating Coverage on Pemex: Set to Outperform on Reclassification Potential

Petroleos Mexicanos

Initiating Coverage on Pemex: Set to Outperform on Reclassification Potential