Mexico Announces $9.5 Billion Bond Plan to Support Pemex Amid $404 Billion Peso Supplier Debt and Credit Watch Upgrade

The Mexican government has announced a financial operation to support Petróleos Mexicanos (Pemex), involving the issuance of bonds worth up to $9.5 billion to strengthen the state oil company's finances. This move is part of a series of measures aimed at improving Pemex's balance sheet and operational capabilities. Fitch Ratings has responded by placing Pemex's credit rating on positive watch, indicating the possibility of an upgrade from its current speculative-grade B+ rating. However, Standard & Poor's Global notes that the government's support does not cover all of Pemex's short-term financial and operational liabilities, and the company is expected to face a cash deficit. Pemex's outstanding debts to suppliers totaled 404 billion pesos as of March 2025, raising concerns about the company's operational viability, labor stability, and future investment. Experts warn that unresolved operational issues continue to threaten public finances, and the recent government measures may not have an immediate impact. Market reactions to the bond issuance plan have been positive, but analysts caution that Pemex is effectively buying time at the expense of public resources.