Moody's turns Light outlook to positive

Moody's Investors Service said it changed the outlook to positive from stable and` affirmed the corporate family rating of Light SA and the issuer ratings of its operating subsidiaries Light Servicos de Eletricidade SA) and Light Energia SA at Ba3 on the global scale.

Light raised R$1.3 billion in capital and strengthened its debt/capitalization ratio to a threshold of 45%-50% compared to the 60.7% average in the last three years (as of FY2020). Also, Light cut its debt cost leading its leverage ratio to approach the agency’s upgrade triggers in the next 12-18 months, Moody’s said.

“The positive trend considers a gradual improvement in credit metrics so that Light's cash flow from operation before working capital changes (CFO pre-WC) to debt and interest coverage ratios should remain above 15% and 3x respectively in 2022. The company's renewed corporate governance, following the appointment of new executive officers and changes in the compensation structure that are more closely aligned with the company's results, should also contribute to the gradual improvement in operating performance,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.