4. Pemexs international financing (beginner). Mexican state-owned oil company Pemex is rated AA in Mexico for domestic

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4. Pemex’s international financing (beginner). Mexican state-owned oil company Pemex is rated AA in Mexico for domestic bond issues but constrained in its international financing by Mexico’s B country rating.

a. What is the highest rating that Pemex can receive on international debt financing?

b. Why do Pemex domestic and international debt ratings differ?

c. What is/are the risk(s) that investors domiciled outside Mexico face when they invest in Pemex’s international bonds?

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