Pemex plans to sell $5B of debt to raise funds

On Thursday, Pemex was set to sell $5 billion of debt at a discount to similarly rated peers as it faces the threat of a credit-rating cut amid worsening losses, according to Bloomberg, citing an unidentified source.

Pemex planned to sell $750 million of three-year notes to yield 5.5%, $1.25 billion in five-year bonds at 6.375%, and $3 billion in 10-year notes at 6.9%.

Moody’s Investors Service is poised to downgrade Pemex if oil prices continue to fall. Moody’s currently rates Pemex Baa1, three levels above junk, while Standard & Poor’s and Fitch Ratings assign the company an equivalent BBB+.

Bank of America Corp., Banco Bilbao Vizcaya Argentaria SA, JPMorgan Chase & Co., and Banco Santander SA are managing Thursday’s sale, according to Bloomberg’s source.

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