Moody's rates CFE certificados Baa1

Moody’s Investors Service said it assigned senior unsecured ratings of Baa1 on the global scale and Aaa.mx on the Mexican national scale to Comision Federal de Electricidad's planned issuance of variable-rate certificados bursatiles, CFE 21-3 due 2024 and CFE 21-4 due 2026, and fixed-rate certificados bursatiles, CFE 21-5 due 2029 and CFE 21-2U inflation linked and due 2031.

“The assigned Baa1/Aaa.mx ratings consider that the proposed notes will be direct obligations of CFE and don't benefit from any additional credit enhancement. As a result, the assigned ratings are in line with CFE's Baa1/Aaa.mx senior unsecured rating, which reflects the company's credit profile,” Moody’s said in a press release.

The senior unsecured certificados bursatiles will be the third, fifth, sixth and seventh drawdown, respectively, under CFE's Ps. 100 billion certificados bursatiles program with a five-year tenor. Together CFE 21-3, CFE 21-4, CFE 21-5 and CFE21-2U issuances will be up to Ps. 10.5 billion.

CFE will use the proceeds to finance the prepayment of Ps. $10.5 billion of debt obligations.

The outlook is negative.

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