June 28, 2019 / 2:50 PM / 21 days ago

Mexican utility's spat with IEnova hurts investor confidence-Moody's

MEXICO CITY, June 28 (Reuters) - Credit ratings agency Moody’s said on Friday that Mexican power utility CFE’s request for arbitration over several pipeline contracts are “credit-negative” for Mexico’s IEnova and Canada’s TC Energy Corp, the utility and the sector as a whole.

Moody’s the said CFE’s initiation of the dispute undermines market and investor confidence, adding that it could discourage future partnerships with the private sector.

IEnova, a unit of U.S.-based Sempra Energy, says the CFE is seeking arbitration over a contract it signed in partnership with TC Energy to build a $2.5 billion pipeline from Texas to the Mexican Gulf coast port of Tuxpan. (Reporting by Mexico City Newsroom)

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