Initiating Coverage on PEMEX: Set to Outperform on Reclassification Potential

We believe that the possibility of PEMEX being reclassified as a 'public company' along with the strengthening of government support, will have positive credit implications.

Executive Summary

• We are initiating coverage on PEMEX with an Outperform recommendation.  We believe that the possibility of PEMEX being reclassified as a 'public company' from a 'state productive entity,' along with the strengthening of government support, will have positive credit implications. We think this potential reclassification will lead to an i…