LatinNews Daily - 22 May 2026

*International credit ratings agency Moody’s has downgraded the credit rating of Mexico’s state-run electricity firm, Comisión Federal de Electricidad (CFE), from Baa2 to Baa3 – its lowest investment grade rating. In a statement, Moody’s said the downgrade was a response to the federal government’s credit rating, which was also downgraded to Baa3 the previous day, which it said was due to a “weakening in fiscal strength” and “rigid spending” amid continued support for indebted state-run oil company, Petróleos Mexicanos (Pemex). Despite this, Moody’s affirmed CFE’s baseline credit assessment (BCA), or stand-alone rating, at ba3, below investment grade. This refers to the CFE’s credit profile without taking into account the effects derived from its direct relationship with the government. Moody’s stated that, from an operational and financial standpoint, it recognised CFE’s strengths, citing “its dominant position in the national electricity market, the diversification of its operations, its adequate liquidity levels, and the recent improvement in its financial metrics”.

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