S&P rates CFE notes BBB

S&P said it assigned its global scale foreign currency BBB issue-level rating to Comision Federal de Electricidad’s proposed senior unsecured notes on two tranches of up to $2 billion.

The notes will have a tenor of 10 to 30 years and a fixed interest rate for both tranches.

CFE’s subsidiaries will guarantee the notes and all the company’s current and future financial obligations, in line with the current situation. “We rate the notes at the same level as our global scale issuer credit rating on CFE, considering that the notes aren’t structurally subordinated,” S&P said in a press release.

CFE intends to use the proceeds to refinance debt and for general corporate purposes.

Including the new debt, S&P said it forecasts CFE’s net debt to EBITDA will remain at about 6.5x for the next 12-24 months, with S&P’s standard adjustments for debt, which include long-term leases and pension liabilities.

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