Fitch rates CFE notes BBB

Fitch Ratings said it assigned a BBB foreign-currency issuer default rating and a BBB+ local-currency issuer default rating to Comision Federal de Electricidad (CFE), along with a BBB rating to its proposed $1 billion notes due in 2021.

The proceeds are expected to be used for capital investments and for general corporate purposes

The outlook is stable.

The company also has a national scale long-term rating of AAA (mex), national scale short-term rating of F1+ (mex), unsecured peso notes rating of AAA (mex) and unsecured short-term peso notes rating of F1+ (mex).

The company is a decentralized public entity of the Mexican federal government, Fitch said, and its ratings are at the same level as those of Mexico.

The ratings reflect implicit support of the Mexican government, as well as its position as the largest electricity generator in the country, the agency said.

The company also has exclusive rights for the transmission and distribution of electricity, which makes it strategically important for the country, Fitch said.

The ratings also incorporate the risk of political interference, the agency added.

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