MEXICO ENERGY: Oil’s new era
Mexico’s radical energy reforms will affect far more than oil and gas production. But much must be done before the benefits of a new Pemex are felt. By James Fredrick
Two developments this year have underscored more than
anything else the significance and widespread approval of last
December's landmark energy reform in Mexico. The first came in
January when national oil company Pemex issued its largest ever
bond, selling $4 billion in dollar-denominated notes with
demand four times the amount sold.
As Pemex chief financial officer Mario Beauregard tells
Latin Finance: "The bond is clear evidence of the benefits
investors are seeing in this reform, not only for Mexico but
for Pemex as well."
The second came a month later when Mexico's sovereign rating
was upgraded in by Moody's, largely in recognition of the
reforms to its energy sector. The upgrade from Baa1 to A3 means
that Mexico is the second country in Latin America behind Chile
to achieve an A-level rating from Moody's.
It is no hyperbole to say Mexico's energy reform is radical
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