Spanish energy company Iberdrola will reinvest proceeds from the sale of 13 power plants in Mexico mainly in the United States, ratings agency Fitch Ratings said on April 6.
“The negotiated operation has a positive impact on Iberdrola’s business profile, since it partly reduces the risk in the company’s balance sheet due to its geographical location in Mexico (with a BBB- rating and stable outlook) and eliminates regulatory tensions and litigation risks associated with generating assets”, — reads the message.
Although Iberdrola will remain the leading private producer of renewable energy in Mexico, Fitch believes that the company’s overall influence in the country will weaken.
An agreement was announced on April 3 whereby Iberdrola will sell 13 electric power generation plants in Mexico, including 12 combined cycle plants and one renewable energy plant, to the Mexican government. The size of the transaction is about six billion US dollars.
Source: Rossa Primavera
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