Moody's Reaffirms Triple-A Credit Ratings for CFE on Local Scale

Moody's Local México reaffirmed the highest credit ratings for CFE (Comisión Federal de Electricidad) at AAA.mx for long-term debt and ML A-1.mx for short-term debt, reflecting the utility's dominant market position and strong government backing. Source: heraldomx | mileniomx | excelsiormx | infobae

Why the Ratings Were Affirmed

The ratings are underpinned by CFE's strategic role in Mexico's energy sector. It generates approximately 72% of the country's electricity and serves 99.8% of the population through 49.9 million users. Source: infobae | mileniomx Moody's highlighted the very high probability of government financial support in stress scenarios, given CFE's status as a state-owned productive enterprise. Source: mileniomx The company's exclusive control over transmission and distribution further solidifies its market position. Source: excelsiormx

Key Risks

• High leverage: Debt-to-EBITDA stood at 8.44x as of Q1 2026, driven by labor liabilities, leases, and PIDIREGAS debt. Source: mileniomx | infobae
• Exposure to gas prices: CFE's generation margins are vulnerable to natural gas price volatility. Source: infobae
• Large investment program: Planned capital expenditures and debt maturities could pressure liquidity and credit metrics.