La Jornada: Moody’s confirms CFE’s investment grade

Moody’s placed the credit rating of the Federal Electricity Commission (CFE) at Baa3 with a stable outlook, which confirms its investment grade, the company reported.

In a statement, the CFE indicated that this level allows it to have access to various sources of financing, both local and foreign, under favorable and competitive conditions.

He added that the rating agency highlighted its favorable expectations regarding operational and financial performance, and anticipates that these will be maintained in the future.

The CFE stated that Moody’s also highlighted various credit strengths of the company, including its dominant position in the Mexican electricity market, the growing demand for electricity and a solid history of resilience in adverse economic environments.

He also pointed out that the rating agency also recognizes the active risk hedging strategy implemented by the CFE, which allows it to mitigate its exposure to fluctuations in the exchange rate, interest rates and fuel prices.

He noted that the agency assured that the Federal Commission has an important competitive advantage due to its privileged location, since it allows it to access natural gas at more attractive prices.

Regarding the CFE’s ability to meet its financial obligations, the rating agency highlighted the disciplined and responsible management of the debt, which has allowed the company to have adequate metrics without liquidity pressures in the following years.