CORPORATES

CREDIT OPINION7 June 2019

Update

RATINGS

Petroleos MexicanosDomicile Mexico City, Ciudad de

Mexico, Mexico

Long Term Rating Baa3

Type LT Issuer Rating - FgnCurr

Outlook Negative

Please see the ratings section at the end of this reportfor more information. The ratings and outlook shownreflect information as of the publication date.

Contacts

Peter Speer +1.212.553.4565Senior Vice Presidentpeter.speer@moodys.com

Marianna Waltz, CFA +55.11.3043.7309MD-Corporate Financemarianna.waltz@moodys.com

Petroleos MexicanosUpdate following outlook change to negative and loweringBCA to caa1

SummaryPetroleos Mexicanos (PEMEX)'s Baa3 ratings are based on its caa1 Baseline Credit Assessment(BCA, a measure of a company's standalone credit strength) which considers its high financialleverage and low interest coverage, heavy tax burden and resulting negative free cash flow, aswell as its declining production and proved reserves caused by its inability to fund sufficientcapital investment to replace reserves. PEMEX also has weak intrinsic liquidity and is heavilyreliant on government support. The company still has a large scale proved reserves andproduction base, with average daily production of around 2.3 million barrels of oil equivalentper day (boe/d) for the last twelve months ended March 31, 2019. It benefits from holding adominant role and integrated operations in the energy industry in Mexico; access to plentifuloil and gas resources that can be developed at a competitive cost; and position as a majorcrude oil exporter to the US.

PEMEX's Baa3 ratings take into consideration our joint default analysis, which includesour assumptions of very high government support in case of need and very high defaultcorrelation between PEMEX and the Government of Mexico (A3 negative), resulting in sevennotches of uplift from the company's caa1 BCA.

Exhibit 1

Production and reserves declines continue with insufficient capital investment

12,102

9,412 8,383

7,526 6,849 6,418 6,033

1,253 1,159 1,080 972 891 831 842

9.7

8.17.8 7.7 7.7 7.7

7.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2014 2015 2016 2017 2018 2019-proj. 2020-proj.

Ye

ars

Million

BO

E

Total production Total proved reserves Reserve life

All figures and ratios are calculated using Moody's estimates and standard adjustments. Moody's forecasts are Moody's opinionand do not represent the view of the issuer.Source: Moody's Financial Metrics™

MOODY'S INVESTORS SERVICE CORPORATES

Credit strengths

» Large scale reserves and production with access to developable resources

» Government-related issuer, with very high government support assumed

Credit challenges

» Declining production, proved reserves and reserve life

» High tax, interest and debt burden

» Weak credit metrics and intrinsic liquidity

Rating outlookThe outlook is negative, consistent with the negative outlook on the Government of Mexico's sovereign rating, given the importanceof the sovereign's credit strength and ongoing support to PEMEX's Baa3 ratings. The negative outlook also considers the deteriorationin the stand-alone credit profile of the company, driven by the continued decline in proved reserves and our view that the amount ofplanned capital spending will still fall well short of replacing reserves in 2019 and 2020.

Factors that could lead to an upgrade

» An upgrade is unlikely given the negative rating outlook for Mexico's A3 rating and expectations of continued weak operatingperformance by PEMEX.

Factors that could lead to a downgrade

» A downgrade of Mexico's A3 rating would likely result in a downgrade of PEMEX.

» In order for Moody’s to consider an affirmation of PEMEX’s Baa3 rating following a sovereign downgrade to Baa1, the company’sBCA would have to substantially improve. Factors that could drive a much higher BCA would be the ability of the company tointernally fund sufficient capital reinvestment to fully replace reserves and deliver modest production growth, and generate freecash flow for debt reduction.

» Because PEMEX's ratings high depend on support from the government of Mexico, a change in assumptions about governmentsupport and its timeliness could lead to a downgrade of PEMEX's ratings.

» A lowering of the BCA could also lead to a downgrade of PEMEX’s ratings. Material increases in net debt or much worse thanforecasted operating performance, reserves declines and decreases in reserves life are factors that could lead to a lower BCA.

2 7 June 2019 Petroleos Mexicanos: Update following outlook change to negative and lowering BCA to caa1

MOODY'S INVESTORS SERVICE CORPORATES

Key indicators

Exhibit 2

Petroleos Mexicanos

US Millions Dec-14 Dec-15 Dec-16 Dec-17 Dec-18

LTM

(Mar-19) 2019-proj. 2020-proj.

Average Daily Production (MBOE / Day) 3,432.4 3,174.0 2,950.8 2,661.6 2,440.6 2,339.1 2,276.9 2,306.3

Total Proved Reserves (MMBOE) 12,101.8 9,412.0 8,383.0 7,525.8 6,848.7 6,848.7 6,418.5 6,033.4

Crude Distillation Capacity (mbbls/day) 1,602.0 1,640.0 1,602.0 1,627.0 1,640.0 1,640.0 1,640.0 1,640.0

Downstream EBIT/Total Throughput Barrels ($17.7) ($11.0) ($10.3) ($13.3) ($14.2) ($20.8) ($17.1) ($16.9)

EBIT / Interest Expense 6.5x -0.4x 1.4x 2.1x 2.7x 2.3x 1.7x 1.8x

RCF / Net Debt 2.9% -0.7% -0.7% 4.5% 2.3% -0.4% -0.4% -0.3%

Debt / Book Capitalization 142.2% 195.4% 163.7% 185.7% 187.6% 185.2% 192.5% 199.0%

EBIT / Avg. Book Capitalization -2.9% 12.9% 19.3% 27.6% 23.7% 20.5% 22.0%

All figures and ratios are calculated using Moody’s estimates and standard adjustments. Moody's Forecasts (f) or Projections (proj.) are Moody's opinion and do not represent the views ofthe issuer. Periods are Financial Year-End unless indicated. LTM = Last Twelve Months.Source: Moody’s Financial Metrics™

ProfileFounded in 1938, PEMEX is Mexico's productive state-owned oil and gas enterprise. The company's dominant status in the industryin Mexico will be sustained under the objectives of the current presidential administration, with changes driven by the 2013 energyreform proceeding slowly for the foreseeable future. PEMEX will remain the main energy company in the country, with fully integratedoperations in oil and gas exploration and production (E&P), refining, distribution and retail marketing, as well as petrochemicals.

PEMEX is a leading crude oil exporter, around 60% of its crude is exported to various countries, mainly to the US and Canada (about60%). In the twelve months ended March 31, 2019 the company posted $84.8 billion in revenues and $107.3 billion in assets andproduced an average of 1,757 thousand barrels of per day (bpd) of crude oil (excluding partners). In 2018, PEMEX's royalties, tax, dutiesand other payments to the government amounted to around $27.9 billion. At the same period, PEMEX had total proved reserves of 6.8billion barrels of oil equivalent (boe), with a reserve life of 7.7 years at 2018 production levels.

Exhibit 3

Revenue breakdown by business segmentExhibit 4

EBITDA breakdown by business segment

Industrial Transformation55%

Exploration and Production31%

Commercial entities13%

Others1%

Industrial Transformation refers mostly to refining and marketing. Others include:Fertilizers, Ethylene, Drilling and Services and Logistics business segments. Revenuesconsiders only sales to external clients.Data as of March 2019Source: PEMEX's Q1 Mexican Stock Exchange financial report

Industrial Transformation-17%

Exploration and Production70%

Commercial entities4%

Others9%

Industrial Transformation refers mostly to refining and marketing. Others include:Fertilizers, Ethylene, Drilling and Services and Logistics business segments. EBITDA definedas reported operating income + depreciation and amortization +/- impairments.Data as of March 2019Source: PEMEX's Q1 Mexican Stock Exchange financial report

3 7 June 2019 Petroleos Mexicanos: Update following outlook change to negative and lowering BCA to caa1

MOODY'S INVESTORS SERVICE CORPORATES

Detailed credit considerationsHIGH TAX AND INTEREST BURDEN LIMIT CAPITAL REINVESTMENT AND RESULT IN PERSISTENT NEGATIVE FREE CASHFLOWPEMEX's large outflows for duties, other taxes and interest consume its pretax and interest cash flows, resulting in little or negativecash flow from operations. Thus all of its capital spending must be debt funded, which has constrained its capital reinvestment andled to years of declining production and proved reserves. The sharp decline in oil prices in late 2014 exacerbated this issue, and thecompany's achievements in reducing operating expenses and increasing capital efficiencies since then have not been nearly enough tooffset the decline in revenues. Therefore debt levels have risen while the upstream asset base has been depleted and the downstreamrefining assets have suffered from underinvestment and weak capacity utilization.

The current administration installed a new senior management team at PEMEX in December 2018 and has increased the capitalbudget (including non-capitalizable maintenance) to around $14 billion for 2019, a 33% increase from the 2018 budget. The 2019capital budget for E&P (excluding maintenance) is about $5 billion, a $1.4 billion increase from 2018. The budget for the IndustrialTransformation segment (mainly refining) is around $2.9 billion, an increase of almost $2.1 billion, much of which is earmarked for thenew refinery. New management has made efforts to reduce bureaucracy and improve the effectiveness and efficiency of its capitalinvestment, with the goal of achieving more development activity for each dollar spent. Aided by planned tax reductions in 2020-24,PEMEX expects to increase upstream capital spending each year in order to stabilize oil production over the course of 2019 and beginto grow it with a target of producing 2,624,000 bpd by the end of 2024.

In the first quarter of 2019, the government announced tax breaks of around $2.25 billion for 2019. Management is also focused oncutting operational expenses and, with the help of the government, reducing fuel theft in order to improve PEMEX's earnings andoperating cash flow. However, despite the tax cuts, cost reductions and other initiatives, we forecast that PEMEX will have negativefree cash flow of $8 billion in 2019 and $9.4 billion in 2020. This is based on our expectations for lower average oil prices in 2019-20(assumptions of $65 Brent, $60 WTI and $55 Mexican crude oil basket), continued production declines in 2019 and modest growth in2020, and weak refining margins.

Exhibit 5

PEMEX's negative FCF reduced in 2017-18 thru lower capital spending, planned increases in investment will boost FCF burn in 2019-20

$7.26

$3.08

-$5.26

$0.70 $3.30 $0.59

-$1.10 -$0.98

-$17.10 -$16.04-$8.10

-$4.80-$5.60

-$5.90-$6.90

-$8.50

FCF-$9.90

FCF-$12.90

FCF-$13.30

FCF-$5.50

FCF-$2.30

FCF-$5.40

FCF-$8.00 FCF

-$9.40

-$20.00

-$15.00

-$10.00

-$5.00

$0.00

$5.00

$10.00

2014 2015 2016 2017 2018 31-Mar-2019 LTM 2019E 2020E

US

billion

s

Cash flow from operations Capital expenditures

All figures and ratios are calculated using Moody’s estimates and standard adjustments. Moody's Forecasts (f) or Projections (proj.) are Moody's opinion and do not represent the views ofthe issuer. Periods are Financial Year-End unless indicated. LTM = Last Twelve Months. CFO = Cash flow from operations. FCF = Free Cash Flow.Source: Moody's Financial Metrics™; Moody's Investors Service (estimates)

RESERVES KEEP DECLINING WITH PROVED DEVELOPED DECLINES ACCELERATING, CAPITAL INVESTMENT STILLINSUFFICIENT TO REPLACE RESERVESPEMEX's proved hydrocarbon reserves have been declining for many years, ending 2018 at 6.8 billion boe, equivalent to 7.7 years of lifeat 2018 production levels. The reserve life declined from almost 10 years in 2014 as lower oil prices and continued high taxation has ledto chronic underinvestment. Even more troubling, the company's proved developed (PD) reserves have declined at a more rapid rate,resulting in a PD reserve life that has fallen below five years at the end of 2018. While the company has been able to add some provedundeveloped (PUD) reserves from exploration activities, PD reserves are what drives current production and cash flow.

4 7 June 2019 Petroleos Mexicanos: Update following outlook change to negative and lowering BCA to caa1

MOODY'S INVESTORS SERVICE CORPORATES

Exhibit 6Total proved developed reserve life decline accelerated in 2018

68%

71%67%

64%59% 59% 60%

32%

29%

33%

36%41%

41% 40%

6.6

5.85.2 5.0

4.5 4.64.3

9.7

8.17.8 7.7 7.7 7.7

7.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2014 2015 2016 2017 2018 2019-proj. 2020-proj.

Yea

rs

Millio

n B

OE

PD reserves PUD reserves PD reserve life Total reserve life

All figures and ratios are calculated using Moody’s estimates and standard adjustments. Moody's Forecasts (f) or Projections (proj.) are Moody's opinion and do not represent the views ofthe issuer. Periods are Financial Year-End unless indicated. LTM = Last Twelve Months.Source: Moody's Financial Metrics™; Moody's Investors Service (estimates)

PEMEX's capital budget for E&P is estimated at $5 billion for 2019. Factoring in exploration expenditures we see total costs incurredfor exploration and development rising in 2019-20 to $6 billion and $6.8 billion, respectively. Management plans to focus its E&Pexploration and development activities in areas where it has more expertise and success rates, with more projects in the shallow waterand onshore and less funds devoted to deepwater projects. The company also intends to increase workover activity and enhancedrecovery efforts to increase oil production.

While we believe that PEMEX has ample opportunity to increase efficiencies and effectiveness in its capital investment, we forecastthat total oil and gas production will still decline by 7% in 2019 and then will stabilize in 2020 based on planned capital andmaintenance spending levels. However, reserve replacement will still fall well short of 100%. Based on our assumption of $15/boefinding and development (F&D) costs, reserve replacement will be 48% and 54% in 2019 and 2020, respectively. However, we seedownside risks to our forecast of reserve replacement because some of the activities to boost production risk accelerating the depletionof existing proved reserves without adding new reserves. This shortfall would give PEMEX a short-term increase in production butaccelerate the decline in PEMEX’s reserve life.

In order for PEMEX to achieve 100% reserve replacement, its E&P costs incurred would have to rise to $12.5 billion in 2019 and $12.6billion in 2020, using the same $15/boe F&D assumption. If the company can improve its capital efficiency and lower its F&D coststhen the required spending will be less, but more investment is clearly needed to replace reserves.

Exhibit 7

Total exploration and development costs incurred to rise in 2019-20 after years of declines

1,252.8 1,158.5 1,080.0 971.5 890.8 831.0 841.8

$16.8

$12.6

$8.1

$4.3 $4.6

$6.0 $6.8

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

-

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

2014 2015 2016 2017 2018 2019-proj. 2020-proj.

US

billion

s

Millio

n B

OE

Production Costs incurred

Source: PEMEX; Moody's Investors Service (estimates)

5 7 June 2019 Petroleos Mexicanos: Update following outlook change to negative and lowering BCA to caa1

MOODY'S INVESTORS SERVICE CORPORATES

NEW REFINERY ADDS TO PEMEX'S CAPITAL SPENDING BURDEN WITH DOUBTFUL RETURNS ON INVESTMENT ANDCOST OVERRUN RISKSA key objective of the current administration's energy agenda is for PEMEX to build a new refinery and improve the operationalperformance of the existing refineries to make Mexico more self sufficient in refined products. Given ample refining capacity bothglobally and in North America, we believe the economic returns from this investment are likely to be limited. In addition, if the newrefinery is completed and the existing refineries operational capacity are increased as planned, this with add exposure to lower-marginfuel production and reduce PEMEX's exports of crude and therefore its US dollar revenue generation.

However, the more near term concern are the risks of cost overruns and delays on completion of the new refinery. In May 2019, thegovernment announced the cancellation of the private tender process with major international construction firms to build the newrefinery. Bids came in between $10-$12 billion, with a timeline for completion in excess of three years. But the government insisted theproject should cost $8 billion and take no more than three years to complete.

We believe that the project could end up costing more than the $10-$12 billion suggested by the tenders given the government's andPEMEX's limited know-how on refinery building. Over time, this will place a greater burden on the company's management resources,and will ultimately require more sovereign support to fund the capital investment.

The risks in building the new refinery are akin to those of Petroleo Brasileiro (Petrobras, Ba2 stable), which began construction ofthe new RNEST refinery with two units planned. Construction of the second unit was stopped in the fourth quarter of 2014 and thecompany has cumulatively recorded impairment charges of $4.8 billion through 31 December 2018 and the second unit remainsunfinished.

GOVERNMENT SUPPORT IS CRITICAL TO RATING AND NEED FOR SUPPORT IS RISINGPEMEX's Baa3 ratings take into consideration our joint default analysis, which includes our assumptions that there is i) a very highlikelihood of extraordinary support from the government of Mexico and ii) a very high default correlation between PEMEX and thegovernment, resulting in seven notches of uplift from the company's caa1 BCA. Our view on the likelihood of support considers theprominent role of PEMEX in the Mexican economy and its 100% government ownership, as well as actual support provided in 2016 andmore recently in 2019 by the government. We believe that it is important for the government to facilitate PEMEX's continued accessto the capital markets, given the company’s role in generating hard foreign currency through oil exports and in paying large annualamounts in duties, royalties and taxes, which in aggregate represent about 18-19% of the government’s annual federal governmentrevenues.

In March 2019, the government announced a support package for PEMEX which the government has subsequently adjusted. As of mid-May 2019, the support package amounts to 105 billion pesos (about $5.25 billion) in which PEMEX will receive a capital injection of25 billion pesos ($1.25 billion) to support its investments; early redemption of promissory notes from the government to raise cash of35 billion pesos ($1.75 billion); a tax reduction from profit sharing duty of 30 billion pesos ($1.5 billion); and a 15 billion pesos ($0.75billion) fiscal benefit from production migration to shared contracts. In the first quarter of 2019, PEMEX received 10 billion pesos of thecapital injection and 21.5 billion pesos from the early redemption of promissory notes from the government.

The government has also announced other measures, including using funds from the fiscal oil stabilization fund to inject around$7.5 billion into PEMEX. The government has subsequently backed off of that plan, and has now indicated it will provide more taxreductions to PEMEX for 2021 and 2022 that would further reduce its tax burden by a combined $7 billion over the two years. Thislatest tax reduction proposal has not been directly factored into our forecasts.

While the specific form and timing of support remains uncertain, our base forecasts for 2019 and 2020 incorporate an expectation ofadditional government support to fund PEMEX's negative FCF and thereby facilitating meeting the government's and management'srepeated pledge to avoid any further increases in net debt at PEMEX. In 2019, our forecasted negative FCF and pension payment weview as financing totals around $10 billion, which will require an additional $7 billion of government support beyond the combined $3billion capital injection and early cash out of notes receivable promised in March 2019. In 2020, the negative FCF and pension will beabout $11.5 billion.

6 7 June 2019 Petroleos Mexicanos: Update following outlook change to negative and lowering BCA to caa1

MOODY'S INVESTORS SERVICE CORPORATES

As previously discussed, in order for PEMEX to fully replace reserves we estimate that the company would need to increase its capitalinvestment by $6.5 billion in 2019 and $5.8 billion in 2020. While the spending necessary for reserve replacement is not necessarily thesame amount to maintain or grow production, they are correlated over time and therefore we believe PEMEX will need to meaningfullyincrease its exploration and development spending to achieve the production growth targets the government has established. Thiswould require further support by the government.

Liquidity analysisPEMEX's intrinsic liquidity is weak and highly dependent on government support. At March 31, 2019, PEMEX had $3.4 billion of cashand $5.1 billion in unused committed revolving credit facilities (pro forma for May 2019 financings discussed below) to address some$8.3 billion in US dollar and other non-Peso debt maturities for the twelve months ended March 2020 (excluding revolver borrowingsand accrued interest). Considering the substantial negative free cash flow we forecast for the remainder of 2019 and into 2020, PEMEXhas insufficient liquidity to fund all of its obligations and will need government support and/or market access to manage its debtmaturities.

In mid-May, PEMEX obtained two new committed credit facilities that have an aggregate capacity of $5.5 billion and mature in five-years, replacing its $4.75 billion facilities that were scheduled to mature in 2019-20. After this transaction, total committed facilitiesamount to $9.6 billion. In addition, PEMEX obtained a $2.5 billion five-year term loan that was used to repay a $2 billion term loanscheduled to mature in 2020, effectively refinancing $2 billion of 2020 maturities.

Exhibit 8

Debt maturity profile

$3.4 $5.1

$10.5

$3.9

$10.3 $9.8

$71.9

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

Sources 2019 Jan 20-Mar 20 Apr 20-Mar21 Apr 21-Mar 22 +Apr 22

US

billion

s

Cash & Equivalents Revolver credit facilities Long-term maturities

Data as of March 2019. Revolver facilities' availability pro forma for May 2019 financing transactions. Maturities include revolver borrowings and accrued interest based on revolvermaturities in effect as of March 2019.Source: PEMEX

7 7 June 2019 Petroleos Mexicanos: Update following outlook change to negative and lowering BCA to caa1

MOODY'S INVESTORS SERVICE CORPORATES

Rating methodology and scorecard factorsThe Global Integrated Oil & Gas Industry rating methodology yields an scorecard-indicated outcome of Caa1 as of twelve monthsended March 31, 2019. The assigned Baa3 rating is based on Moody's assumption of very high government support.

Exhibit 9

Rating factorsPetroleos Mexicanos

Methodology: Energy, Oil & Gas - Integrated

Factor 1: SCALE (25%) Measure Score Measure Score

a) Average Daily Production (Mboe/d) 2,339.12 Aa 2,276.88 Aa

b) Proved Reserves (Million boe) 6,848.67 Aa 6,418.48 Aa

c) Total Crude Distillation Capacity (mbbl/day) 1,640.00 A 1,640.00 A

Factor 2: BUSINESS POSITION (20%)

a) Business Position Baa Baa Baa Baa

Factor 3: PROFITABILITY AND RETURNS (10%)

a) EBIT/Average Book Capitalisation 23.72% Aa 20.53% Aa

b) Downstream EBIT/Total Throughput Barrels ($/bbl) -$20.83 Ca -$17.13 Ca

Factor 4: FINANCIAL POLICY (20%)

a) Financial Policy Ba Ba Ba Ba

Factor 5: LEVERAGE AND COVERAGE (25%)

a) EBIT / Interest Expense 2.35x Ba 1.74x B

b) Retained Cash Flow/Net Debt -0.39% Ca -0.38% Ca

c) Total Debt/Capital 185.21% Ca 192.48% Ca

Factor 6: CONSTRAINTS RELATED TO GOVERNMENT'S POLICY GOALS (0%)

a) Constraints Related to Government's Policy Goals

Rating Outcome:

a) Scorecard-indicated outcome

b) Actual Rating Assigned

Government Related Issuer

a) Baseline Credit Assessment

b) Government Local Currency Rating

c) Default Dependence

d) Support

e) Final Rating Outcome

Very High

Baa3

6 6

Caa1

Baa3

Caa1

Baa3

Factor

Current

LTM (Mar-19)

Moody's Forward View

Next 12-18 months (as

of May-19)

caa1

A3

Very High

All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations. Moody's forward view does not represent the viewof the issuer, and unless noted in the text, does not incorporate significant acquisitions and divestitures.Source: Moody’s Financial Metrics™

8 7 June 2019 Petroleos Mexicanos: Update following outlook change to negative and lowering BCA to caa1

MOODY'S INVESTORS SERVICE CORPORATES

Appendix

Exhibit 10

Peer snapshot

(in US millions)

FYE

Dec-17

FYE

Dec-18

LTM

Mar-19

FYE

Dec-17

FYE

Dec-18

LTM

Mar-19

FYE

Dec-16

FYE

Dec-17

FYE

Dec-18

FYE

Dec-17

FYE

Dec-18

LTM

Mar-19

FYE

Dec-17

FYE

Dec-18

LTM

Mar-19

Revenue $74,069 $87,527 $84,854 $237,162 $279,332 $275,542 $127,925 $149,099 $184,106 $88,827 $95,584 $93,855 $240,208 $298,756 $296,905

Avg. Prod. (MBOE/day) 2,662 2,441 2,339 3,985 3,834 3,856 2,345 2,455 2,667 2,497 2,340 2,065 3,631 3,713 3,718

Proved Reserves (MBOE) 7,526 6,849 6,849 21,221 24,293 24,293 10,911 10,868 11,437 9,686 9,510 9,510 18,182 19,663 19,663

Distil. Capacity (MB/day) 1,627 1,640 1,640 4,918 4,724 4,724 2,011 2,021 2,021 2,276 2,276 2,276 1,892 1,890 1,890

EBIT/Avg Book Capital 19.3% 27.6% 23.7% 7.1% 9.7% 8.8% 5.3% 8.1% 11.2% 8.8% 13.3% 12.5% 5.7% 10.4% 10.5%

DS EBIT/Throughput Bbls ($13.3) ($14.2) ($20.8) $7.7 $7.8 $7.8 $10.3 $10.6 $9.2 $10.6 $6.4 $5.2 $11.2 $12.0 $11.8

EBIT / Int. Exp. 2.1x 2.7x 2.3x 12.0x 15.0x 14.0x 6.2x 7.4x 8.0x 2.2x 3.3x 3.6x 4.9x 7.5x 7.3x

RCF / Net Debt 4.5% 2.3% -0.4% 32.3% 44.2% 39.8% 27.1% 40.9% 26.5% 25.6% 30.8% 28.3% 25.4% 31.2% 30.5%

Total Debt/Capital 185.7% 187.6% 185.2% 19.3% 18.1% 18.3% 47.8% 44.2% 47.1% 64.4% 62.8% 62.1% 47.8% 47.1% 46.6%

Source: Moody’s Financial Metrics™. All figures & ratios calculated using Moody’s estimates & standard adjustments. FYE = Financial Year-End. LTM = Last Twelve Months. RUR* = Ratings under Review, where UPG = for upgrade and DNG = for downgrade.

Baa3 Stable Aaa Stable Aa3 Positive Ba2 Stable A1 Stable

Petroleos Mexicanos Exxon Mobil Corporation Total S.A. Petroleo Brasileiro S.A. - P BP p.l.c.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2015 2016 2017 2018 LTM

Avg. Prod. (MBOE/day)

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

2015 2016 2017 2018 LTM

Proved Reserves (MBOE)

0

1,000

2,000

3,000

4,000

5,000

6,000

2015 2016 2017 2018 LTM

Distil. Capacity (MB/day)

-2.0x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

2015 2016 2017 2018 LTM

EBIT / Int. Exp.

-5.0%0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%50.0%

2015 2016 2017 2018 LTM

RCF / Net Debt

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

2015 2016 2017 2018 LTM

Total Debt/Capital

Petroleos Mexicanos (Baa3) Exxon Mobil Corporation (Aaa) Total S.A. (Aa3) Petroleo Brasileiro S.A. - PETROBRAS (Ba2) BP p.l.c. (A1)

9 7 June 2019 Petroleos Mexicanos: Update following outlook change to negative and lowering BCA to caa1

MOODY'S INVESTORS SERVICE CORPORATES

Exhibit 11

Summary financialsHistorical and projected data

2014 2015 2016 2017 2018

LTM

Mar-19 2019-proj. 2020-proj.

EBIT 49,586.12 -2,924.79 11,514.42 18,828.04 24,495.80 21,656.45 16,881.0 17,495.8

EBITDA 60,346.57 7,687.18 19,585.09 27,136.36 32,619.26 29,808.36 24,583.4 25,294.4

Funds from Operations 5,467.30 -1,087.92 -1,176.92 7,560.55 3,557.59 -623.11 -577.9 -426.0

Retained Cash Flow 5,467.30 -1,087.92 -1,176.92 7,560.55 3,557.59 -623.11 -577.9 -426.0

Cash Flow from Operations 7,262.03 3,085.73 -5,261.02 -706.37 3,330.78 588.51 -1,127.9 -976.0

Capital Expenditures -17,168.27 -16,046.02 -8,122.65 -4,870.30 -5,673.04 -5,999.27 -6,927.5 -8,500.0

Free Cash Flow -9,906.24 -12,960.28 -13,383.67 -5,576.67 -2,342.25 -5,410.75 -8,055.4 -9,476.0

Cash + Marketable Securities 8,372.13 6,332.46 8,076.36 5,055.26 4,171.77 3,428.84 4,159.3 4,159.3

Total Debt 175,363.87 158,262.38 153,288.83 165,948.67 158,231.45 164,192.06 158,231.4 158,231.4

Book Capitalization 123,300.43 80,980.27 93,639.12 89,380.30 84,355.57 88,651.36 80,059.6 78,989.9

Average Daily Production (MBOE / Day) 3,432.42 3,173.97 2,950.82 2,661.64 2,440.64 2,339.12 2,276.90 2,306.30

Total Proved Reserves (MMBOE) 12,101.83 9,412.00 8,383.00 7,525.83 6,848.67 6,848.67 6,418.5 6,033.4

Reserve Life (Total Proved, years) 9.7 8.1 7.8 7.7 7.7 8.0 7.7 7.2

E&P Revenues / BOE $68.1 $37.7 $30.6 $41.6 $51.4 $52.2 $48.5 $48.7

E&P Production Costs / BOE $9.4 $9.7 $8.5 $13.6 $16.0 $16.6 $17.1 $17.0

E&P G&A Costs / BOE $6.7 $6.1 $5.6 $6.5 $7.9 $8.2 $8.2 $7.9

E&P Unleveraged Cash Margin / BOE $52.0 $21.8 $16.5 $21.5 $27.6 $27.4 $24.6 $24.8

E&P Cash Interest Expense / BOE $6.1 $6.4 $7.6 $9.1 $10.4 $10.8 $11.2 $11.1

E&P Leveraged Cash Margin / BOE $46.0 $15.4 $8.9 $12.4 $17.2 $16.5 $12.0 $12.7

Leveraged Full-Cycle Ratio -0.4x -0.7x 0.4x 0.4x 0.8x 0.9x

SUMMARY FINANCIALS (US millions)

E&P OPERATING METRICS

All figures and ratios are calculated using Moody's estimates and standard adjustments. Projected numbers represents Moody's forward view, not the view of the issuer, and unless noted inthe text, does not incorporate significant acquisitions and divestitures.Source: Moody's Financial Metrics™; Moody's Investors Service (estimates)

10 7 June 2019 Petroleos Mexicanos: Update following outlook change to negative and lowering BCA to caa1

MOODY'S INVESTORS SERVICE CORPORATES

Exhibit 12

Debt adjustmentsPetroleos Mexicanos

109,168.62

55,023.44 164,192.06

As Reported Debt Pensions Moody's-Adjusted Debt

US

mill

ions

Data as of March 2019All figures and ratios are calculated using Moody's estimates and standard adjustments.Source: Moody’s Financial Metrics™

Exhibit 13

EBITDA adjustmentsPetroleos Mexicanos

19,416.06

5,109.88

5,335.72 29,808.36

(53.30)

As Reported EBITDA Pensions Unusual Non-Standard Adjustments Moody's-Adjusted EBITDA

US

mill

ions

Data as of March 2019All figures and ratios are calculated using Moody's estimates and standard adjustments.Source: Moody’s Financial Metrics™

Ratings

Exhibit 14Category Moody's RatingPETROLEOS MEXICANOS

Outlook NegativeIssuer Rating Baa3Senior Unsecured Baa3Commercial Paper -Dom Curr P-3NSR Senior Unsecured Aa3.mxNSR Commercial Paper MX-1NSR BACKED Senior Unsecured Aa3.mx

Source: Moody's Investors Service

11 7 June 2019 Petroleos Mexicanos: Update following outlook change to negative and lowering BCA to caa1

MOODY'S INVESTORS SERVICE CORPORATES

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12 7 June 2019 Petroleos Mexicanos: Update following outlook change to negative and lowering BCA to caa1