Moody's rates CFE notes Baa1

Moody's de Mexico, SA de CV said it assigned a Baa1 global scale rating and an Aaa.mx national scale rating to Comision Federal de Electricidad's proposed senior unsecured 30-year fixed rate notes for up to Ps. 17 billion.

The outlook is stable.

Moody's said the Baa1 rating reflects the application of Moody's joint default analysis framework for government related issuers, which takes into account the following four input factors: (a) a baseline credit assessment of 11 as a measure for the rated entity's standalone creditworthiness; (b) the Baa1 rating of the Mexican government as the support provider; (c) Moody's estimates of a very high degree of implied government support in the case of financial distress; and (d) a very pronounced default dependence between Comision Federal and the Mexican government.

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