The Federal Electricity Commission (CFE) is the only integrated utility company in Mexico and is one of the largest in the world.
All of the following description of that company was made by Standard & Poor’s Global Ratings, which confirmed CFE’s global and national scale ratings and revised individual credit profile to ‘b’ from ‘b+’.
Likewise, the CFE is the largest electricity producer in the country and the only company that can carry out electricity transmission and distribution activities in Mexico.
The company has a portfolio of 195 electric power facilities, with a transmission network of more than 110,000 kilometers (km) and a distribution network of more than 868,000 km, serving around 46.6 million consumers.
In addition, it has a generation capacity of 59,561 megawatts (MW) and its sole owner is the federal government of Mexico.
The CFE remains fundamental to the government and benefits, in Standard & Poor’s opinion, from its support.
Overall, the company continues to play a critical role for the Mexican government by providing a key service to the country, as the company has a monopoly on electricity transmission and distribution in Mexico and owns the strategic assets for the national electricity grid.
The CFE is also the only company that provides electricity to low-consumption residential users and is the main supplier of high-consumption residential users.
Standard & Poor’s expects it to continue to be a leading player in the country’s power generation industry.
On the other hand, the close link -or integral link- between the company and the Mexican government is based on the fact that the sovereign is the sole owner of CFE and, from Standard & Poor’s perspective, will continue to have control of the company, appoint to the senior managers of the company, and will establish its strategic and financial policies.
The CFE has a special public status and can be considered as an extension of the government.
Standard & Poor’s does not expect any changes in the relationship between the sovereign and the company in the next 12 to 24 months given the importance of the company in the national electricity industry.
Finally, the CFE continues to benefit from ongoing government support, because low- and medium-consumption residential customers benefit from subsidies.
In 2021, the company received around 70.3 billion Mexican pesos.