Moody's rates CFE notes Baa1

Moody's Investors Service said it assigned a Baa1 global scale rating to Comision Federal de Electricidad's proposed senior unsecured global notes for up to $750 million and a tenor up to 30 years.

The outlook is stable.

Moody's said the assigned Baa1 rating considers that the proposed notes will be direct obligations of the company. Moody's said it reviewed preliminary draft legal documentation related to the debt issuance and the assigned ratings assume that there will be no material variation from the drafts reviewed and that all agreements will be legally valid, binding and enforceable.

The rating also considers that 100% of the proceeds from the proposed notes will be used to refinance debt under a syndicated loan and that they will be neutral to the company's leverage, the agency said.

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