Moody’s Assigns Ba2 to Cox Mexico’s US$750 Million Notes

Cox Asset Mexico has issued US$750 million in Ba2-rated subordinated perpetual notes to redeem US$733 million in senior debt due in 2031, extending its debt maturity profile ahead of major obligations in 2032. The liability management strategy provides financial flexibility to support the company’s US$4 billion to US$5 billion energy investment pipeline in key industrial corridors like Nuevo Leon. Operating within Mexico's Plan México regulatory framework, the qualified electricity supplier leverages a 2,600MW installed portfolio to serve expanding nearshoring, manufacturing, and data center demand.

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Moody’s Ratings has assigned a Ba2 rating to Cox Asset Mexico’s proposed US$750 million subordinated perpetual notes issuance while affirming the company’s Ba1 Corporate Family Rating (CFR) and senior secured rating with a stable outlook.

According to Moody’s, the proposed perpetual hybrid notes, which rank one notch below the company's Ba1 CFR due to their subordinated and unsecured status, will be utilized to redeem an outstanding US$733 million senior secured term loan maturing in 2031. The transaction reconfigures the company's capital structure by converting amortizing debt into junior perpetual obligations, which will rank junior to US$2 billion in existing senior secured bonds maturing in 2032 and 2036. On a pro forma basis, the subordinated notes will account for approximately 28% of Cox Asset Mexico’s total debt.

Under Moody's Hybrid Equity Credit methodology, the notes are categorized under Basket L (0% equity credit) and treated entirely as debt for metric calculations, given that holders retain subordinated creditor claims in insolvency scenarios. The refinancing results in a minor adjustment to credit metrics, with the funds from operations (FFO) to net debt ratio projected at 13.9% and interest coverage at 2.3x on average for the 2027–2029 period, compared to baseline estimates of 15.2% and 2.7x. Moody's noted that this slight leverage deterioration is offset by the extension of the issuer's debt maturity profile ahead of its first major bond maturity in 2032.

The Ba1 rating reflects Cox Asset Mexico’s stable cash flow visibility supported by medium- and long-term customer contracts, a diversified portfolio, and its integrated qualified supply and generation platform in Mexico. However, the ratings remain constrained by contract expirations starting in 2029, limited cost pass-through capabilities, evolving domestic regulatory dynamics, and a leveraged capital structure.

Cox Expands Capital Strategy to Support US$5 Billion Mexican Pipeline

On May 27, 2026, MBN reported that Cox Infrastructure Group (formerly Cox) confirmed plans to deploy between US$4 billion and US$5 billion in local energy and infrastructure projects over the coming years, consolidating Mexico as the primary market in its global portfolio. This deployment builds upon Cox’s US$4 billion acquisition of Iberdrola’s Mexican assets completed in late April 2026, which established the firm as the nation's largest private energy supplier with 2,600MW of installed capacity, annual generation exceeding 20TWh, and a 25% market share among qualified private electricity consumers.

Backed by a development pipeline of approximately 12,000MW in renewable projects and strong backing under the Plan México policy framework, Cox is focusing a significant portion of its capital on high-demand industrial hubs like Nuevo Leon to support nearshoring expansion, advanced manufacturing, and data center growth, all while maintaining a conservative global leverage ratio of 0.9x net debt to EBITDA.