S&P lifts CFE view to positive

Standard & Poor's said it revised the outlook on Comision Federal de Electricidad SA (CFE) to positive from stable.

The agency also said it affirmed the company's BBB foreign-currency and A- local-currency ratings and BBB foreign-currency ratings on its senior unsecured notes due 2021 and 2042. S&P also affirmed its mxAAA national scale rating.

In accordance with the agency's criteria on government-related entities and assuming no changes in the current likelihood of extraordinary support from the government, the outlook revision reflects that a potential upgrade of Mexico would lead to a similar rating action on this company, said Maria del Sol Gonzalez, an S&P analyst.

The ratings consider that there is an almost certain likelihood that the government of Mexico would provide timely and sufficient extraordinary support to the company in the event of financial distress, the agency said.

S&P also takes into account the company's integral link with the government of Mexico given its full and stable ownership and involvement.

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