The ratings on PEMEX, the state-owned Mexican oil and gas company, and the United Mexican States are linked because of the government's ownership of the company, PEMEX's importance to the Mexican economy, the government's heavy dependence on oil-related revenue, and the considerable government oversight of the company, particularly with respect to all fiscal aspects of management. PEMEX accounted for more than 40% of Mexico's public sector revenue in 2004 through taxes and dividends; petroleum and derivatives account for about 15% of the country's total adjusted exports (net of "maquila" imports). We believe PEMEX's willingness to meet its financial obligations is determined by the United Mexican States. We also believe PEMEX's importance as a source of tax revenues and export receipts...
Companies mentioned in this report are:
- Petroleos Mexicanos
- Pemex Project Funding Master Trust
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