Moody's rates CFE notes Baa1/Aaa.mx

Moody's de Mexico, SA de CV said it assigned a Baa1 global scale rating and a Aaa.mx national scale rating to Comision Federal de Electricidad's (CFE) proposed senior unsecured floating-rate local notes CFE 13 due 2018 and senior unsecured fixed-rate local notes CFE 13-2 due 2023.

On a combined basis, the total issuance amount of CFE 13 and CFE 13-2 local notes should not exceed Ps. 15 billion. The proposed local notes (certificados bursatiles) will be issued under CFE's dual local note program with a five-year tenor registered in November 2010 with Mexico's Comision Nacional Bancaria y de Valores (CNBV).

Subject to the authorization from CNBV, the total revolving program will be upsized to up to Ps. 100 billion or its equivalent in "Unidades de Inversion" (UDI). The proposed local notes CFE 13 will be issued as the first re-opening of the third draw down under the program and the local notes CFE 13-2 will be the fourth draw down.

Moody's said the assigned Baa1/Aaa.mx ratings consider that the proposed notes will be direct obligations of CFE. The agency has 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.

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