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Mexico's Pemex-centric energy plan could hit investment - S&P

Credit: REUTERS/Edgard Garrido

A Mexican government energy policy that gives more weight to state oil company Pemex could cause private sector investment to fall, an analyst with credit ratings agency Standard & Poor's said on Thursday.

Adds comment from S&P Pemex analyst, background

MEXICO CITY, Nov 21 (Reuters) - A Mexican government energy policy that gives more weight to state oil company Pemex could cause private sector investment to fall, an analyst with credit ratings agency Standard & Poor's said on Thursday.

Lisa Schineller, S&P's head of Latin American sovereign ratings, said at an event in Mexico City that the government's prudent fiscal policy positions have already been incorporated into its sovereign credit rating for the country.

The agency is unlikely, however, to modify its Pemex credit rating, at least in the near term.

Luis Manuel Martinez, S&P's lead analyst covering the Mexican national oil company, said he has not seen factors that would provoke a Pemex downgrade over the next few months.

S&P in March slashed the credit rating for Pemex, the world's most indebted oil company, to B- from BB-. It also cut Pemex's outlook to negative from stable while keeping its global investment grade rating at BBB+.

In June, Fitch Ratings cut the credit rating of Pemex from investment grade to speculative grade, or "junk," with a negative outlook.

A second downgrade to junk from another major rating agency would likely trigger billions of dollars in forced selling of the company's bonds from funds whose mandates prohibit holding such assets.

(Reporting by Abraham Gonzaelz; Editing by Anthony Esposito and Marguerita Choy)

((david.aliregarcia@thomsonreuters.com; +52 55 5282 7151; Reuters Messaging: david.aliregarcia.thomsonreuters.com@reuters.net))

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