Fitch rates CFE notes BBB-

Fitch Ratings said it assigned a BBB- rating to Comision Federal de Electricidad's planned unsecured sustainability notes due in 2029 and 2052; the notes together will not exceed $2.125 billion.

“CFE's ratings are equalized with the Mexican sovereign ratings based on Fitch's government-related entities ratings criteria. Fitch assesses the linkage between the two entities as very strong and believes the government has a strong to very strong incentive to support CFE,” the agency said in a press release.

The notes will be guaranteed by CFE Distribucion, CFE Suministrador de Servicios Basicos, CFE Transmision, CFE Generacion I, CFE Generacion II, CFE Generacion III, CFE Generacion IV, CFE Generacion V and CFE Generacion VI.

CFE will use the proceeds to finance or refinance new or eligible green projects or social projects under an ESG framework. While these projects begin, a part of the proceeds from both tranches will be used to repay company´s debt.

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