Moody's assigns negative outlook to México Generadora de Energía

Moody's Investors Service confirmed the 'Baa2' rating assigned to the senior secured notes of México Generadora de Energía (MGE) and downgraded the company's rating outlook to negative.

The move follows confirmation of the 'Baa2' rating of MGE's offtaker, Minera México, a subsidiary of US firm Southern Copper Corporation, whose outlook was also changed to negative, Moody's said in a statement.

MGE, which like Southern Copper is indirectly owned by Grupo México, was created to develop, construct, own, operate and maintain two 250MW natural-gas fired power plants in Sonora state.

All of the plants' power is sent to two affiliated offtakers that are 100% owned by Minera México under a long-term electric energy self-supply agreement: copper miners Mexicana de Cobre and Buenavista del Cobre.

"Given the strong linkages of MGE with Minera México, the rating action on MGE follows the confirmation of the rating of Minera México and the outlook change," the agency said.

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