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LatinNews Daily - 07 October 2021

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In brief: More concerns about Mexico’s electricity reform

* International credit ratings agency Moody’s Investors Service has warned that an electricity sector reform recently sent to congress by Mexico’s President Andrés Manuel López Obrador is “credit negative”. In a press release, Moody’s slammed the reform proposal – López Obrador’s third attempt at advancing a contentious electricity reform – saying that “The initiative is credit negative for the Mexican electricity sector because it would lessen its operating transparency, deter private investment in generation, disincentivise renewable generation and likely increase the overall cost of generation”. Moody’s does note that the reform’s approval in congress “is not the most likely scenario” as the ruling Movimiento Regeneración Nacional (Morena) does not hold enough seats to guarantee that the reform receives the necessary two-thirds majority vote.