Pemex 2Q25: Strong Government Backing Anchors Credit

Tangible government support improves funding conditions and liquidity while narrowing spreads, though weak fundamentals and limited cash generation persist.

Key Insights and Recommendations

We recommend a selective Overweight on Pemex’s curve, supported by strong government backing evidenced by the $12 billion issuance and openness to private-sector funding, which effectively improves liquidity, reduces interest expense, and diversifies funding sources.