Fitch rates CFE bond BBB+

Fitch Ratings said it assigned a BBB+ rating to Comision Federal de Electricidad’s (CFE) $1.25 billion bond issuance due 2024, which was issued Oct. 24, 2013.

The company has a long-term issuer default rating of BBB+, local-currency long-term issuer default rating of A-, national long-term rating rating of AAA(mex), national scale short-term rating of F1+(mex), national scale debt issuances rating of AAA(mex) and short-term certificados bursatiles program rating of F1+(mex).

The ratings consider the company’s position as the largest electricity generator in Mexico and its monopoly on transmission and distribution activities, which makes it strategically important for the country, Fitch said.

The ratings also reflect CFE’s strong linkage with the Mexican government, the agency said, and the government’s implicit support.

The relationship between CFE and the government is strong and extends beyond its ownership, Fitch said.

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