Moody's rates CFE notes Baa1

Moody's de México said it assigned Comisión Federal de Electricidad's proposed additional senior floating-rate local notes due 2014 and fixed-rate notes due 2020, which will not exceed Ps. 8 billion combined, Baa1 global and Aaa.mx Mexican national scale ratings.

The outlook is stable.

The ratings consider that the proposed notes will be direct obligations for the company and the expectation that short-term debt issuances under the program will not exceed Ps. 2 billion, Moody's said.

The ratings reflect support from the government, a low credit risk, a dominant market position and a solid financial profile, as well as the risk of political interference with established automatic cost recovery mechanisms, which could affect the company's cash flow and financial profile going forward, the agency said.

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