OREANDA-NEWS. December 23, 2015. Fitch Ratings affirms the ratings assigned to the outstanding series issued by PEMEX Finance Ltd. as follows:

--Series 1998 9.15% notes due 2018 at 'A+'; Outlook Stable;
--Series 1999 10.61% notes due 2017 at 'A+; Outlook Stable.

PEMEX Finance Ltd. is a Cayman Islands special purpose company wholly owned by Petroleos Mexicanos S.A. de C.V. (Pemex). The future flow program is backed by receivables generated by the sale of Maya crude to designated U.S., Canadian and Aruban customers.

KEY RATING DRIVERS
Credit Quality of Pemex: On May 7, 2015, Fitch affirmed Pemex's foreign currency (FC) and local currency (LC) Issuer Default Ratings (IDRs) at 'BBB+' and 'A-', respectively. The Rating Outlook is Stable. While performance risk related to the originator and the securitized business line does not constrain the current rating of the transaction, Fitch tempers the notching uplift of future flow ratings for highly rated originators.

Small Size of Future Flow Program: The outstanding balance of the program is \\$275 million, which represents less than 1% of PEMEX's total liabilities. The longstanding program is scheduled to fully amortize in November 2018.

High Albeit Reduced DSCRs: The future flow program continues to benefit from high debt service coverage ratios (averaging 76.8x in 2015) despite a collapse in Maya crude oil prices and a reduction in production levels.

Sovereign Stability: On July 31, 2015, Fitch affirmed Mexico's Long-term FC and LC IDRs at 'BBB+' and 'A-', respectively, and the Country Ceiling at 'A'. The Outlook is Stable.

RATING SENSITIVITIES
The ratings assigned to the notes are sensitive to changes in the credit quality of Pemex as well as to sustained severe reductions in program collections.

DUE DILIGENCE USAGE
No third-party due diligence was provided to or reviewed by Fitch in relation to this rating action.