Fitch: Energy Reform to Create Competitive Market for Mexican Electricity Sector

MONTERREY, Mexico--()--Mexico's recent energy reform will create a more competitive market in the electricity sector, according to a new Fitch Ratings report.

Fitch believes the allowance of large industrial users to contract their electricity requirements directly with new private investors, independent power producers or the Comision Federal de Electricidad (CFE) will create an open and competitive wholesale market.

In Fitch's opinion, CFE will remain Mexico's largest generator and will maintain its monopoly on transmission and distribution activities in the country. Also, Fitch believes preferential tariffs for agricultural and residential customers will continue, at least in the medium term, due to their social component and the political cost of eliminating them.

The full report 'Mexican Electricity Sector' is available at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Alberto De Los Santos
Associate Director
+52-81-8399-9100
Fitch Mexico, S.A. de C.V.
Prol. Alfonso Reyes 2612
or
Giancarlo Rubio
Associate Director
+1-212-612-7899
or
Lucas Aristizabal
Senior Director
+1-312-368-3260
or
Media Relations
Elizabeth Fogerty, New York, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Alberto De Los Santos
Associate Director
+52-81-8399-9100
Fitch Mexico, S.A. de C.V.
Prol. Alfonso Reyes 2612
or
Giancarlo Rubio
Associate Director
+1-212-612-7899
or
Lucas Aristizabal
Senior Director
+1-312-368-3260
or
Media Relations
Elizabeth Fogerty, New York, +1 212-908-0526
elizabeth.fogerty@fitchratings.com